Bloomberg News

Latvian Economy Expanded at Fastest Pace in EU in First-Quarter

June 08, 2012

Latvia’s economy expanded at the quickest pace in the European Union in the first quarter and more than previously estimated as growth in trade, manufacturing and construction accelerated.

Gross domestic product increased a revised 6.9 percent from a year earlier, compared with a previous 6.8 percent reading, the statistics office, based in the capital, Riga, said today by e-mail. The economy grew a seasonally adjusted 1.1 percent on the quarter.

Latvia is rebounding from the world’s deepest recession in 2008-2009, which erased almost a quarter of economic output after a property bubble bust and inflows of credit dried up, prompting an International Monetary Fund bailout. GDP grew 5.5 percent last year, buoyed by exports and industrial output, and may expand 3.5 percent in 2012, the IMF predicts.

Consumer prices rose 2.2 percent from a year earlier in May after increasing 2.8 percent the previous month, the statistics office said in a separate release. That compares with a 2.4 percent median estimate of five economists in a Bloomberg survey. Prices declined 0.2 percent from the previous month.

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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