Q3 2024, compared to Q3 2023, gross domestic product (GDP) reduced by 1.6%. As compared to the previous quarter, GDP went down by 0.2%, according to seasonally and calendar adjusted data at constant prices, from the Central Statistical Bureau of Latvia (CSP).
In the first 9 months, compared to the respective period of the previous year, GDP at constant prices (seasonally and calendar non-adjusted) reduced by 0.5%.
In Q3 GDP at current prices was EUR 10.1 billion, in nine month – EUR 29 billion.
In Q3 2024, compared to the corresponding period of the previous year, total value added decreased by 2.5%. Value added reduced both in services sectors (by 2.0%) and in manufacturing sectors (by 2.7%).
Value added of the agriculture, forestry and fishing sector has gone down by 1.8%.
As a result of various external and internal influencing factors, manufacturing has decreased by 2.1%. It was affected by fall in the largest manufacturing sector – manufacture of wood and of products of wood – by 1.2%. Decrease was also observed in manufacture of fabricated metal products (of 7.8%), manufacture of computer, electronic and optical products (5.5%) and manufacture of food products (2.0%). Manufacturing volumes have gone up in manufacture of chemicals and chemical products (of 0.2%) and manufacture of other non-metallic products (12.0%). Overall, 10 out of 22 manufacturing sectors showed positive results.
Rise in the production volume of other industry sectors comprised 13.0%. Group of sectors was positively affected by the increase in electricity, gas, steam and air conditioning supply (of 20.1%), mining and quarrying (12.2%) and water supply; sewerage, waste management and remediation activities (3.4%).
Construction production volume decreased by 6.9%, which was affected by a low demand in construction of buildings (drop of 19.3%). The fall in volume of civil engineering work (by 0.4%) was affected by increase in construction of utility projects (by 14.6%), drop in construction of roads and railways (by 4.4%), as well as a decrease in other civil engineering projects n.e.c. (by 44.1%). The volume of specialized construction activities fell by 2.7%.
There was an increase in trade sector of 4.7%. All sub-sectors showed positive results. A rise of 7.6% was observed in trade and repair of motor vehicles and motorcycles, of 0.5% in retail trade and of 1.6% in wholesale.
Transport and storage sector (drop of 7.7%) was negatively affected by a drop of 8.3% in land and pipeline transport activity, of 15.5% in water transport sector, of 9.7% in warehousing and support activities for transportation, of 4.2% in postal and courier activities. In turn positive contribution was reached by growth in air transport sector (by 16.7%).
Rise of 2.1% was observed in accommodation and catering sector. Provision of accommodation services increased by 10.2%, but overall growth of the sector was slowed down by a decline in catering of 1.8%.
In information and communication sector there was a drop of 2.7%. This was driven by a drop in volume in provision of computer programming and consultancy services (of 5.5%) and telecommunication activities (2.1%). On the other hand, provision of information services showed positive results this quarter (7.1%).
Upturn in financial and insurance activities of 2.5% was promoted by rise in activities auxiliary to financial services and insurance activities of 34.4%, which was promoted by the strong performance of several enterprise groups. In financial service activities and insurance, reinsurance and pension funding there was a drop of 3.2% and 5.8%, respectively.
Drop in volume of professional, scientific and technical activities of 2.2% was affected by reduction of activity in provision of legal and accounting activities of 3.5% and provision of veterinary services of 10.2%. In turn positive contribution to the development of the sector was ensured by growth in development of scientific research work (of 2.2%).
Value added of administrative and support service activities this quarter increased by 8.1%. Positive contribution to the development of the sector was provided by the rise in volume of construction and landscape architectural services (of 18.4%), labour recruitment and provision of personnel (17.3%), as well as rental and leasing services (15.3%). A drop in security and investigation activities comprised 16.7%, but the volume of travel agency, tour operator reservation and related services fell by 5.5%.
Rise of 0.8% on taxes on products (mainly value added tax, excise and customs taxes) was determined by growth in income from value added tax.
In Q3 2024, compared to the corresponding period of the previous year, total household expenditure increased by 1.1%.
Government final consumption expenditure grew by 7.7%.
Investment in gross fixed capital formation fell by 5.1%, of which in dwellings and other buildings and structures by 6.9%, in machinery and equipment, of which in transport vehicles, by 2.8%). Investment in intellectual property products (research, computer software, databases, copyrights, etc.) – reduced by 4.7%.
Exports of goods and services increased by 0.2%, of which exports of goods by 0.5%, but exports of services reduced by 1.5%. The main commodities in exports were wood and products of wood (except furniture), electrical machinery and equipment, as well as mineral products. The main services exported were exports of transport services and other economic activity (R&D, professional and management consulting, technical, trade-related and other business).
Imports of goods and services increased by 0.2%, of which imports of goods rose by 0.2%, but imports of services decreased by 0.3%. Mainly, mineral products, electrical machinery and equipment, vehicles and associated transport equipment are imported. Main imports services: transport services and other economic activity services.
Compared to Q3 2023, in Q3 2024 compensation of employees increased by 8.4%, of which total wages and salaries by 8.2%, but employers’ social security contributions by 9.6%.
Compensation of employees in producing sectors has risen by 4.8%, most rapidly it rose in mining and quarrying (by 11.5%) and water supply; sewerage, waste management and remediation activities (by 9.8%). Compensation of employees in construction rose by 4.5%.
Compensation of employees in services sectors rose by 9.7%. It has increased significantly in education (by 17.5%), administrative and support service activities (by 14.0%) and other services (by 12.8%).
Gross operating surplus and mixed income decreased by 5.0%, the balance of taxes on production and imports and subsidies has risen by 2.7%.