Bloomberg News

Latvian Fourth-Quarter Economic Growth Revised Up to 5.7 Percent

March 09, 2012

Latvia’s economy expanded at a quicker pace than previously estimated in the fourth quarter as trade, manufacturing and construction grew.

Gross domestic product rose a revised 5.7 percent from a year earlier, compared with an initial 5 percent estimate, the statistics office in the capital, Riga, said today. It grew 1.1 percent from the previous quarter and 5.5 percent in the whole of 2011.

The Baltic nation’s economy has been growing for two years after a debt-fueled property bubble burst, export markets closed and lending tightened, erasing almost a quarter of GDP. The International Monetary Fund cut its forecast for Latvia’s 2012 growth to 1.5 percent as turmoil in the euro area curbs export and manufacturing growth.

Trade expanded 8.5 percent from a year earlier, while manufacturing rose 9.1 percent and construction grew 25.9 percent, according to the statistics office.

The country exited a 7.5 billion-euro ($9.9 billion) lending program from a group led by the European Commission and the IMF in December.

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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