Compared to Q2 2021, gross domestic product (GDP) rose by 3.0% in Q2 2022, according to seasonally and calendar non-adjusted data at constant prices.
In Q2 GDP at current prices was EUR 9.5 billion. As compared to the previous quarter, GDP went down by 1.0%, according to seasonally and calendar adjusted data at constant prices prepared by the Central Statistical Bureau of Latvia.
In Q2 2022, compared to the same period of the previous year, growth in agriculture sector activity was estimated at 3.2% (of which, rise in crop production of 4.6%, but in livestock production – drop of 0.5%). Increase in forestry and logging sector was 14.9%, while in fishery there was a decrease – of 1.6%.
As manufacturing shown a positive development during the last eight quarters, it contributed significantly into the growth of total added value – rise of 5.8% (increase was observed in 16 out of 22 sectors). It was promoted by growth in the second largest manufacturing sector – manufacture of food products (by 1.3%). Increases were also observed in other manufacturing sectors: manufacture of fabricated metal products (4.8%), manufacture of non-metallic mineral products (7.1%), manufacture of electrical equipment (4.1 %), manufacture of furniture (5.2%), manufacture of beverages (16.1%), as well as manufacture of pharmaceutical products and preparations. In turn, 0.5% drop was observed in the largest manufacturing sector – manufacture of wood and of products of wood, which was affected by a fall of 3.6% in sawmilling and planing of wood; impregnation of wood and rise of 1.4% in activity of sectors of manufacture of wood and of products of wood.
In other industry sectors a drop was observed: of 5.5% in mining and quarrying, of 10.8% – in electricity, gas, steam and air conditioning supply and of 10.0% – in water supply; sewerage, waste management and remediation activities.
Reduction in volume of construction sector (of 13.8%) was negatively affected by rising construction costs, which delayed beginning of work (due to the indexation of contracts), reduced the demand and prolonged deadline for completion of work.
In all three construction sub-sectors there was a drop: construction of buildings fell by 9.6%, work carried out in civil engineering – by 16.8% and specialized construction work carried out – by 15.5%.
There was a drop in trade of 8.2%, which was affected by a fall in wholesale trade of 21.1%. Positive contribution in development of trade was generated by rise in trade and repair of motor vehicles and motorcycles (by 5.7%). In retail trade increase (of 2.5%) was promoted both by rise in retail sale of non-food products by 2.6% and rise in retail sale of food products by 2.5%.
Growth in transport and storage sector (of 7.2%) was positively affected by development of land and pipeline transport (2.4%), air transport (increased 3.7 times), water transport sector rose by 23.8%, warehousing and support activities for transportation – by 8.1%. In turn, transport sector was negatively affected by postal and courier activities – a drop of 12.0%.
Lifting of travel, movement and epidemiological restrictions promoted positive development of accommodation and food service activities sectors (rise of 77.4%), which was affected by growth in accommodation sector by 92.4% and provision of food service activities – by 73.5%.
Significant positive impact on the growth of total value added was ensured by information and communication sector (rise of 15.3%), which was promoted by the rise in volume of provision of telecommunication services by 19.0%, computer programming and consultancy sector – by 18.1% as well as information services – by 6.0%.
Fall in financial and insurance activities of 5.5% was negatively promoted by financial service activities and insurance, reinsurance and pension funding, in turn, growth was observed in activities auxiliary to financial services and insurance activities.
Rise of 15.3% in professional, scientific and technical activities was significantly promoted by growth in legal and accounting activities (of 37.6%), other professional, scientific and technical activities (17.3%) as well as rise in advertising and market research (13.8%).
Administrative and support service activities rose by 20.1% with increase was observed in all sub-sectors.
The largest growth was observed in travel agency, tour operator reservation services (of 87.1%). There also were significant growths in the largest sub-sectors: in building maintenance and landscape architectural services (of 13.3%), rental and leasing services sector – of 24.2%, labour recruitment and provision of personnel – of 27.8%.
In Q2 this year the volume of taxes on products (value added tax, excise and customs taxes) fell by 0.9%, which was affected by reduction in the largest group of taxes on products – income from value added tax, but growth was observed in excise duty revenues.
In Q2 2022, compared to the corresponding period of the previous year, total household expenditure rose by 8.0%.
The completely lifted restrictions on the spread of Covid-19 contributed to the increase in household expenses for accommodation and food services as well as recreation and culture. Expenditure in the respective groups increased by 26.8% and 45.1%. Expenditure of households on transport (public transport, purchase and exploitation of transport vehicle) has grown by 1.2%. Due to the geopolitical situation, the prices of energy resources increased rapidly, as a result of which households spent less and reduced their expenses on dwelling (water, electricity, gas and other fuels) by 2.0%.
Government final consumption expenditure grew by 2.7%.
Investment in gross fixed capital formation increased by 2.7%. Investment in machinery and equipment (of which in transport vehicles) rose by 18.2% and in intellectual property products – by 19.8%, but investment in dwellings and other buildings and structures reduced by 13.8%.
Exports of goods and services grew by 9.1%. Exports of goods has increased by 5.7%. Main products exported were wood and products of wood, as well as mineral products. Exports of services increased by 20.5%, and its rise was mainly affected by exports of transport services, computer services and other economic activities.
Imports of goods and services grew by 11.2%. Imports of goods went up by 10.9%, but imports of services – by 12.6%. Mineral products, electrical machinery and equipment were imported the most, but rise in imports of services was mainly determined by transport services as well as imports of other economic activity.
Compared to Q2 2021, in Q2 2022 compensation of employees at current prices increased by 11.3%, of which total wages and salaries rose by 11.0%, but employers’ social security contributions – by 12.9%.
The sharpest increase in compensation of employees was registered in arts, entertainment and recreation – by 22.2%, information and communication – by 18.3% and in the group of wholesale trade, retail trade; repair of motor vehicles and motorcycles; transport and storage; accommodation and food services sectors – by 16.5%. In general compensation of employees in services sectors rose by 13.3%.
Gross operating surplus and mixed income increased by 14.8%, whereas the balance of taxes on production and imports and subsidies – by 55%.