The Latvian economy advanced 1.7 percent on quarter in the three months to September of 2018, downwardly revised from the initial estimate of 1.8 percent and compared to a 1.2 percent rise in the previous period. Main drivers of growth were real estate activities (7.6% vs -4.7% in Q2); transportation & storage (4.3% vs 3.2%) and mining & quarrying and utilities (3.3% vs -2.5%). Conversely, activity slowed markedly in financial & insurance (0.8% vs 27.1 percent) and declines were seen in wholesale & retail trade; repair of motor vehicles & motorcycles (-0.2% vs 0.2%); manufacturing (-0.2% vs 2.0%); construction (-0.4% vs 3.4%); accommodation & food service activities (-1.5% vs 1.8%) and agriculture, forestry & fishing (-0.2 percent, after showing no growth in Q2). Year-on-year, the GDP grew 4.7 percent in the third quarter of 2018, below a preliminary reading of 4.8 percent and following a 5.3 percent advanced in the previous quarter. GDP Growth Rate in Latvia averaged 0.99 percent from 1995 until 2018, reaching an all time high of 6.40 percent in the fourth quarter of 1996 and a record low of -6.10 percent in the second quarter of 2009.
GDP Growth Rate in Latvia is expected to be 0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Latvia to stand at 1.60 in 12 months time. In the long-term, the Latvia GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.