RISP2301
GDP has risen by 2.0 % in 2022 and by 0.3 % in the 4th quarter
Data compiled by the Central Statistical Bureau (CSB) show that in 2022, as compared to 2021, Gross Domestic Product (GDP) increased by 2.0 %. In 2022, GDP at current prices amounted to EUR 39.1 billion.
Compared to the 4th quarter of 2021, in the 4th quarter of 2022, GDP increased by 0.3 % (according to seasonally and calendar unadjusted data). Compared to the 3rd quarter, GDP at constant prices has remained unchanged (according to seasonally and calendar adjusted data). In the 4th quarter GDP at current prices was EUR 10.7 billion.
In 2022 GDP at current prices comprised EUR 39 080.7 million
Production approach
(2022 compared to 2021, at constant prices)
In 2022 value added of producing sectors reduced by 1.1 %, but in services sector – increased by 4.2 %.
Increase was registered in volume of agriculture, forestry and fishing – of 7.0 %, which was affected by production output rise in crop and livestock production (of 2.5 %) and forestry and logging (13.6 %), but reduction was observed in fishery (2.6 %).
Different development trend in breakdown by sub-sectors (growth in peat extraction and processing of 1.7 % and drop in quarrying of gravel and sand of 8.9 %) caused overall reduction in mining and quarrying of 0.5 %.
Regular positive contribution to growth of the overall economic development (0.3 percentage points in 2022) was in manufacturing – increase of 2.7 %. Rise was indicated by 14 out of 22 manufacturing sub-sectors. In the sub-sectors having the largest share in manufacturing – manufacture of wood and of products of wood – production output fell by 1.0 %, but in manufacture of food products – by 1.6 %. Positive activity can be observed in other significant manufacturing sub-sectors: in manufacture of electrical equipment (increase of 8.6%), in manufacture of other non-metallic mineral products (rise of 5.3%), in manufacture of furniture (growth of 0.7%), in manufacture of fabricated metal products (increase of 0.5%), as well as in manufacture of pharmaceutical products and preparations.
In electricity, gas, steam and air conditioning supply manufacturing volumes fell by 14.3 % (significant drops in all sub-sectors).
The value added of construction output decreased by 11.3 % in 2022, affected by the decline in all three sub-sectors in all four quarters of the year. During the year volumes of building construction reduced by 9.8 %, civil engineering – by 13.1 % (of which, construction of roads and railways – by 8.5 % and construction of utility projects – by 17.3 %, but other civil engineering projects n.e.c. – by 36.4 %). During the year volume of specialized construction activities reduced by 11.3 %, of which demolition and site preparation – by 26.9 %, electrical, plumbing and other construction installation activities – by 7.8 %, building completion – by 18.0 %, but other specialized activities – by 7.8 %.
Retail trade increased by 4.3 %, of which trade in non-food products – by 6.5 %, but trade in food products – by 0.5 %. Wholesale trade, retail trade and repair of motor vehicles and motorcycles rose by 10.1 %, but in wholesale a significant drop was observed – of 18.7 %.
Rise in transportation and storage sector (of 2.3 %) was promoted by growth in warehousing and support activities for transportation of 3.5 % and in water transport sector activities – increase of 17.1 %. Development of the sector was negatively affected by drop of 2.8 % in land and pipeline transport and of 6.2 % in postal and courier activities.
Lifting of restrictions introduced in 2021 for the purpose of improving the epidemiological situation affected the result of activity of accommodation and food services industry – in 2022 there was a significant increase of 57.5 %, moreover, such an increase was found in both sub-sectors (both in the provision of accommodation and food services).
In 2022 the most significant contribution (0.7 percentage points) on the growth of total value added was ensured by development of information and communication sector – rise of 14.0 %, of which in the largest sub-sectors: in telecommunication services – by 17.3 %, computer programming and consultancy sector – by 14.4 % as well as provision of information services – by 8.7 %.
In 2022, the decrease in financial and insurance activities in the amount of 3.1 % was determined by the financial service activities and insurance, reinsurance and pension funding – reduction of 9.3 % and 7.5 %. In turn, there has been an increase of 26.1 % in financial service activities and activities auxiliary to financial services and insurance activities, which was provided by other activities auxiliary to financial services, except insurance and pension funding, security and commodity contracts brokerage and activities of insurance agents and brokers.
Rise of 13.1 % in professional, scientific and technical activities was promoted by growth in legal and accounting activities (of 22.9 %), activities of head offices, management consultancy activities (15.1 %) and advertising and market research (30.4 %) and other professional, scientific and technical activities (12.9 %). In turn, the development of the sector was negatively affected by architectural and engineering services, technical testing and analysis, where the volume of services provided decreased by 2.6 %.
Significant rise of administrative and support service activities of 25.7 % was promoted by positive development in all sub-sectors. The most significant growth was observed in travel agency, tour operator reservation services sub-sector (of 78.3 %). Positive development was also observed in rental and leasing services sector – by 31.9 %, in labour recruitment and provision of personnel – by 35.5 %, in security and investigation activities – by 7.3 %, in building maintenance and landscape architectural services – by 15.2 %, in office administrative activities – by 17.0 %.
The successful activity of arts, entertainment and recreation after the lifting of various types of epidemiological requirements contributed to the growth of the sector by 26.6 %, compared to the previous year. The most significant increase was in gambling and betting activities (by 60.6 %) and in creative and arts activities (by 21.2 %).
In 2022 the volume of taxes on products (mainly value added tax, excise and customs taxes) decreased by 0.2 %.
Expenditure approach
(2022 compared to 2021, at constant prices)
In 2022, compared to the previous year, total household expenditure increased by 8.0 %. In the first quarter of last year, restrictions related to reducing the spread of COVID-19 continued, which were gradually lifted and did not affect economic activity in the remaining quarters of the year. This contributed to the increase in expenses in such household consumption groups as recreation and culture (rise of 37.1 %) and restaurants and hotels (growth of 40.3 %). Expenditure of households on transport (public transport, purchase and exploitation of transport vehicle) increased by 2.6%. Household expenditure on food products rose by 0.2 %. Rapidly rising prices of energy resources have encouraged households to save and expenditure on housing (rentals for housing, maintenance and repair of the dwelling, water supply, electricity, gas and other fuels) have decreased by 6.9 %. The drop was also affected by the moderately warmer weather conditions at the beginning of the heating season.
Government final consumption expenditure grew by 2.8 %.
Investment in gross fixed capital formation rose by 0.7 %. In dwellings, other buildings and structures it has reduced by 11.0 %. In machinery and equipment, of which in transport vehicles – increased by 9.0 %. Investment in intellectual property products (research, computer software, databases, copyrights, etc.) – grown by 21.2 %.
Exports of goods and services grew by 9.1 %, of which exports of goods – by 5.6 % and exports of services – by 20.0 %. Main commodities in exports were wood and products of wood (except of furniture) and electrical machinery and equipment. In 2022 exports of transport services and other economic activity (R&D services, professional and management consulting services, technical, trade-related and other business services) as well as computer services increased.
Imports of goods and services grew by 11.6 %, of which imports of goods – by 9.8 % and imports of services – by 21.0 %. Mainly mineral products and electrical appliances and electrical equipment are imported. Imports of transport services, computer services and other business services has increased significantly.
Income approach
(2022 compared to 2021, at current prices)
Compared to 2021, in 2022 compensation of employees increased by 11.5 %, of which total wages and salaries rose by 11.2 %, but employers' social security contributions by 12.7 %.
The largest growth in compensation of employees was in arts, entertainment and recreation, other service activities – by 18.8 %; in information and communication sector – by 17.5 % and in professional, scientific, technical activities and administrative and support service activities – by 16.6 %. Total compensation of employees in services sectors in total was 13.2 % higher than in 2021.
Gross operating surplus and mixed income increased by 20.1 %, taxes on production and imports less subsidies rose by 24.8 %.
Possible changes made by the government sector estimates, balance of payments and financial services sector, moreover updated indices of business services will be taken into account in the GDP calculations and balancing of the quarterly national accounts on the 85th day after the reference quarter. The updated information will be available on Official statistics portal on March 24.
Methodological information
Calculations of quarterly data of the 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 carried out by the CSB;
Data from the Ministry of Finance, the Treasury and the State Revenue Service;
Latvijas Banka;
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 corresponding 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 price index. The following volume indices are used: change in number of employees and change in natural indicators (e.g., in removals, passenger number, 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 the 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@csp.gov.lv
Tel: +371 27880666
More information on quarterly data:
Gita Ķiņķevska
Quarterly National Accounts Section
E-mail: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791
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