Data compiled by the Central Statistical Bureau (CSB) show that in 2019, as compared to 2018, the economic growth continued and Gross Domestic Product (GDP) increased by 2.2 %. In 2019, GDP at current prices amounted to EUR 30.5 billion.

Compared to the 3^rd quarter, in the 4^th quarter of 2019 GDP at constant prices grew by 0.1 % (according to seasonally and calendar adjusted data).

Volume and changes of the GDP

	Million euros, seasonally non-adjusted		Changes as %, at constant prices
Period*	at current prices	at constant prices of 2015	compared to the previous period, seasonally and calendar adjusted	compared to the corresponding period of the previous year, seasonally and calendar non-adjusted
2018^*	29 056.1	26 906.2	x	4.3
1^st quarter	6 305.7	5 880.8	1.4	2.8
2^nd quarter	7 275.1	6 772.4	1.3	4.7
3^rd quarter	7 640.9	6 995.9	1.4	4.4
4^th quarter	7 834.3	7 257.1	1.0	5.0
2019^*	30 476.1	27 497.5	X	2.2
1^st quarter	6 761.3	6 064.2	-0.5	3.1
2^nd quarter	7 650.4	6 905.7	0.7	2.0
3^rd quarter	8 044.0	7 200.6	0.6	2.9
4^th quarter	8 020.5	7 326.9	0.1	1.0

^*Revised data on the previous period.

In 2019, GDP at current prices constituted EUR 30 476.1 million EUR

Table - In 2019, GDP at current prices constituted EUR 30 476.1 million EUR

Production approach

(2019 compared to 2018, at constant prices)

In 2019, increase was registered in agriculture, forestry and fishing – of 12.8 %, which was mainly affected by production output rise in crop and livestock production – of 23.8 %, forestry and logging – of 5.9 %, but decrease was recorded in fishery. In 2019, weather conditions were very favourable for the development of crop production sector, which ensured highest harvested production of grain in Latvia's history (3.2 million tonnes) and rise of crop production over the previous year of 46.4 %. Volume of livestock production fell by 1.1 % (prices of livestock production have risen by 3.9 % over a year).

Manufacturing went up by 2.1 % (rise was observed in ten out of 22 sectors). In the sector having the largest share in manufacturing – manufacture of wood and of products of wood – production output remained at the level of the previous year. Rise was recorded in manufacture of fabricated metal products (of 13.6 %), manufacture of computer, electronic and optical products (9.3 %), manufacture of electrical equipment (16.0 %), printing and reproduction of recorded media (7.5 %). But reduction was observed in manufacture of food products (of 0.8 %), manufacture of other non-metallic mineral products (2.1 %) and manufacture of furniture (2.8 %).

In electricity, gas, steam and air conditioning supply manufacturing volume fell by 4.4 %, of which in production and distribution of electricity – by 3.2 % and in steam and air conditioning supply there was a decrease of 10.3 %.

Construction production volume rose by 2.9 %. Over the year, construction of buildings grew by 7.8 %, civil engineering – by 1.0 %, and specialised construction activities by 0.2 %.

In 2019, retail trade increased by 2.4 %, of which retail trade in food products – by 1.1 %, but trade in non-food products – by 4.2 %. Wholesale trade, retail trade and repair of motor vehicles and motorcycles rose by 6.2 %, but wholesale – by 5.3 %.

In transport and storage sector decrease of 4.0 % was promoted by drop in freight transport by 6.0 %, fall in warehousing and support activities for transportation by 7.5 %, rise in passenger traffic by 7.7 %, increase in postal and courier activities by 17.8 %.

Accommodation and catering services grew by 8.0 %, of which accommodation – by 1.2 %, catering – by 11.2 %.

Information and communication services grew by 2.0 %, including rise of 9.1 % in computer programming and consulting. Information and communication services decreased by 0.3 %, and telecommunication services – by 5.8 %.

In 2019, financial and insurance activities fell by 8.8 %, which was mainly because of the decline in financial service activities of 10.9 % and drop in activities auxiliary to financial services and insurance activities of 17.8 %. Rise of 4.6 % in insurance, reinsurance and pension funding was ensured by drop in claims and prices. Decrease in financial service activities was enhanced by the increase of the other administrative expenses of monetary financial institutions (especially, expenses for information services and computer services, as well as for other services), as well as reduction of profit on transactions with financial instruments and decrease of commission income. In activities auxiliary to financial services and insurance activities reduced net turnover in other activities auxiliary to financial services, except insurance and pension funding and activities of insurance agents and brokers.. Also commission income of investment companies (manages 2nd and 3rd pension pillars) reduced.

Rise of volume of professional, scientific and technical activities of 7.5 % was promoted by increase in all sectors. Most significant growths in the largest sectors: head offices; management consultancy activities – by 17.4 %, advertising and market research – by 8.7 %, other professional, scientific and technical activities – by 8.0 %, legal and accounting activities – by 6.1 %, architectural and engineering activities; technical testing and analysis – by 4.3 %.

In 2019, administrative and support service activities went up by 6.5 %, which was facilitated by the significant rise in labour recruitment and provision of personnel sector (of 24.3 %) and growth of 6.6 % in services to buildings and landscape activities. But security and investigation activities experienced a drop of 3.9 %.

Increase of 5.8 % was registered in arts, entertainment and recreation sector, which was mainly affected by 7.9 % rise in gambling and betting activities.

In 2019 the volume of taxes on products (value added tax, excise and customs taxes) increased by 0.2 %.

GDP changes in Q4 2019 and in 2019 by kind of activity

Graph - GDP changes in Q4 2019 and in 2019 by kind of activity

Expenditure approach
(2019 compared to 2018, at constant prices)

In 2019, compared to the previous year, total household expenditure rose by 4.9 %. Expenditure on transport (public transport, purchase and exploitation of transport vehicles) rose by 9.6 %, and expenditure on recreation and culture went up by 6.9 %. Household expenditure on food went up by 0.9 %, while expenditure on housing rose by 2.0 %. The key expenditure groups form 57.8 % of the total household expenditure.

Government final consumption expenditure grew by 2.6 %.

Investment in the gross fixed capital formation grew by 3.1 %, of which by 2.8 % in dwellings and other buildings and structures and by 2.0 % in machinery and equipment, including transports equipment. Investment in intellectual property products (research, computer software, databases, copyrights, etc.) increased by 11.6 %.

Exports of goods and services rose by 2.0 %, of which exports of goods by 0.4 % and exports of services by 5.7 %. Exports mainly consisted of wood and products of wood and cork (except furniture) and electrical equipment and parts thereof. In 2019, an upturn was registered in exports of transport services, other economic activity (R&D services, professional and management consulting services, technical, trade-related and other business services), information and computer services. Downturn was recorded in exports of services related to tourism and financial intermediation services.

Imports of goods and services, in its turn, went up by 2.3 %, of which imports of goods by 2.2 % and imports of services by 2.7 %. Machinery, mechanical appliances, electrical machinery, transport vehicles and pharmaceutical products are the key imports commodities. Rise was registered in imports of transport, information and computer and other economic activity services. The value of imports of services related to tourism, telecommunication and financial services dropped.

GDP changes in Q4 2019 and in 2019 by kind of expenditure

Income approach

(2019 compared to 2018, at current prices)

In 2019, the total compensation of employees increased by 8.6 %, of which total wages and salaries – by 8.3 % and social security contributions of employers – by 9.9 %. The sharpest increase in compensation of employees was registered in construction – by 13.5 %, and information and communication services sector – by 9.8 %. Gross operating surplus and mixed income increased by 0.8 %, whereas the balance of taxes on production and imports and subsidies went up by 3.5 %.

Total wages and salaries and changes

Graph - Total wages and salaries and changes

GDP changes in the Baltic countries
(at constant prices, seasonally and calendar non-adjusted, as % of the corresponding period of the previous year)

Graph - GDP changes in the Baltic countries

**Data on Lithuania for the 4^th quarter of 2019 are based on the flash estimate.

Some changes may be made to the government sector estimates, balance of payments and financial services sector, moreover indices of business services will be taken into account in the GDP calculations and balancing of the quarterly national accounts on the 85^th day after the reference quarter. The updated information will be available in the CSB databases on 25 March.

Data revisions based on recalculation of 2018 from annual data sources, will be carried out and integrated in GDP time series on 30 September 2020.

Time series of historical data and revision values of main GDP indicators are published. This information is available for download in Excel files in the CSB database GDP metadata section and in the future will be supplemented with the latest GDP estimates on a regular basis.

Methodological information

Calculations of quarterly data of the Gross Domestic Product (GDP) are made in line with the methodology of the European System of Accounts (ESA 2010). Main data sources used in calculations are:

Surveys of quarterly and monthly enterprises and institutions;
Labour Force Survey;
Data from the Ministry of Finance, the Treasury and the State Revenue Service;
Data from the Bank of Latvia and the Financial and Capital Market Commission;
Data from the Institute of Agricultural Resources and Economics.

The GDP statistics from production and expenditure approach is calculated at current prices (registration and calculations are made at the actual prices of the respective period) and constant prices. The indicators at constant prices are expressed at prices of the previous calendar year and prices of the reference year (chain-linked).

To calculate GDP at the prices of the previous calendar year the actual prices of the previous calendar year are used as a base and the “annual average” method (where each running quarter (or year) is calculated at the average prices of the previous year) is used. To make the calculations, various deflators are used. Both volume indices and price indices may be used as deflators. The following price indices are used: consumer price index, producer price index, construction cost index, services producer price index, price indices of agricultural products, export unit value index, import unit value index. The following volume indices are used: change in number of employees and change in natural indicators (e.g., in removals, passenger number, freights, etc.).

To calculate GDP at the prices of the reference (base) year (currently, prices of 2015) the indices calculated from the GDP indicators at the prices of the previous year are used to chain-link the calculated volume indices with 2015.

GDP from the income approach is calculated at current prices only.

The published data are adjusted in line with the Guidelines for CSB Revision Policy. The adjustments are made due to receipt of specified information as well as latest administrative data, inclusion of new economically active enterprises and institutions in surveys, specification of economic activity of sector of enterprises.

Media requests:
Communication Section
E-mail: media@csb.gov.lv
Phone: +371 67366621, +371 27880666

More information on quarterly data:
Gita Ķiņķevska
Quarterly National Accounts Section
E-mail: Gita.Kinkevska@csb.gov.lv
Phone: +371 67366791

Gross domestic product — quarterly data

Press releases

In the 3rd quarter, GDP has increased by 5.1 %

Flash estimate shows that in the 3rd quarter GDP rose by 4.8 %

In the 2nd quarter, GDP has increased by 11.1 %