At the same time, in the second quarter of this year, compared to the previous quarter, namely the first quarter of this year, according to seasonally and calendar adjusted data, Latvia’s GDP decreased by 0.1%.
In actual prices, Latvia’s GDP in the first half of this year amounted to 19.8 billion euros, including 10.44 billion euros in the second quarter.
The Statistical Office states that in the second quarter of 2024, compared to the corresponding period of the previous year, the total added value decreased by 0.1%, with service sectors increasing by 0.5%, and manufacturing sectors decreasing by 1.4%.
According to operational data and assessments, the agricultural sector grew by 7.1% in the second quarter of this year, which was influenced by a 12.6% increase in crop production and a 1.4% decrease in livestock production. There was a 16% drop in the fisheries sector, and a 0.4% drop in the forestry and logging sector.
Due to various external and internal influencing factors, a long period of recession, with volumes decreasing for the eighth quarter in a row, has entered the manufacturing industry, the statistics office said. In the second quarter of this year, the decline in this sector was 2.3% compared to the second quarter of last year. This was influenced by a decrease in the largest manufacturing sector – the production of wood and wood products – by 0.8%. A drop was also observed in the production of finished metal products – by 7% and in the production of computers, electronic and optical equipment – by 11.2%.
On the other hand, the manufacturing industry was positively affected by the increase in its second largest sector – the production of food products by 2%. Production volumes also increased in the chemical substances and chemical products production sector – by 12.2% and in the production of non-metallic mineral products – by 5.1%.
In general, nine out of 22 manufacturing industry sectors showed positive performance results.
The volume of production of other industries decreased by 2.5%. The group of industries was negatively affected by the drop in electricity, gas supply, heating and air conditioning – by 7.6%, while mining and quarrying showed a positive result due to increased demand, which had an increase of 12.6%. In water supply, sewage, waste management and rehabilitation there was an increase of 3.6%.
After sharp increases in output last year, output in the construction industry fell by 1.5% in the second quarter of this year, driven by low demand in building construction, which fell by 15.8%. The volume of engineering construction increased by 18.6%, which was influenced by increases in the construction of urban infrastructure objects by 50.3%, in the construction of roads and railways by 1.6%, as well as a decrease in other engineering construction by 2.2%. The volume of specialized construction works decreased by 1.5%.
Trade was down 0.9%, driven by a 7.6% drop in the trade and repair of automobiles and motorcycles. The 0.4% increase in retail sales was driven by a 1.2% increase in non-food retail sales and a 2.3% drop in food retail sales. Sales of motor fuel increased by 3.8%. Wholesale trade remained at the previous year’s level.
The 7.8% decrease in the transport and storage sector was negatively affected by a 7.5% decrease in land and pipeline transport, a 29.2% decrease in water transport, a 9.7% decrease in storage and transport auxiliary activities, as well as a decrease in mail and in courier activities by 1.7%. On the other hand, a positive contribution was made by the growth of the air transport sector by 13.4%.
An increase of 0.4% in the second quarter is shown by the sector of accommodation and catering services. The volume of service provision increased by 2.9%, but the overall development of the industry was hampered by a 0.5% drop in catering services.
In the second quarter, there was an increase of 5.6% in the activities of the information and communication industries. This was driven by growth in computer programming and consulting by 4.5% and information services by 18.9%. On the other hand, the telecommunication services sector showed a negative result in this quarter, which saw a drop of 1.9%.
The decrease of 8.2% in the financial and insurance sector was contributed by the decrease in the financial services sector by 9.9%, which was affected by the increase in the costs of monetary financial institutions, and financial services and insurance activities in complementary activities by 8.3%. The insurance activities and pension accumulation sector had an increase of 0.4%.
The decrease of the professional, scientific and technical services sector by 1.4% was influenced by the decrease in activity in the provision of advertising and market research services by 23.4% and in the provision of veterinary services by 3.6%. On the other hand, growth in the provision of legal and accounting services, which increased by 4.4%, central office activities, business and management consulting, which increased by 2.8%, architectural and engineering services, technical inspections and analysis, had a positive impact on the development of the sector. in the provision of services, where there was an increase of 5%, as well as in the development of scientific research work, where there was an increase of 1.3%.
According to the Statistics Office, the activities of administrative and service services show a stable increase over a long period of time, and the amount of services provided increased by 3.5% in this quarter as well. A positive contribution to the development of the sector was made by the provision of building maintenance and landscaping services, which saw an increase of 9.2%, as well as the search and provision of labor, which saw an increase of 4.5%. There was a decrease of 15.1% in security services and investigative activities, while the volume of rental and operating leasing services decreased by 7.1%.
The increase in product taxes (mainly value added tax, excise and customs duties) in the amount of 1.9% was determined by the increase in value added tax revenues.
In the second quarter of 2024, compared to the corresponding period of the previous year, the total expenses of households increased by 0.5%. Household spending on food decreased by 1.3%, while spending on housing, water, electricity, gas and other fuels decreased by 0.6%. At the same time, spending on recreation and culture increased by 1.1%, while spending on clothes and shoes went up by 6.8%.
Government final consumption expenditure increased by 8.5%.
Investments in the formation of gross fixed capital decreased by 5.7% in the second quarter of this year, including housing, other buildings and structures – by 1.5%, and machinery and equipment, including vehicles – by 9.5%. Investments in intellectual property products (research, computer software, databases, copyrights, etc.) decreased by 8.8%.
Exports of goods and services decreased by 3.4%, including exports of goods decreased by 2.4% and exports of services decreased by 6%. The main export goods were wood and wood products (except furniture), electrical appliances and electrical equipment, as well as mineral products. In the second quarter of 2024, the main exported services were transport services and other economic activity services (research and development, professional and managerial, technical, trade-related and other economic activity services).
At the same time, imports of goods and services decreased by 2.9%, including imports of goods decreased by 1.8%, while imports of services decreased by 7.5%. Mainly imported mineral products, electrical appliances and electrical equipment, land vehicles and their parts. The most important imported services were transport and other economic services.
The Statistical Office also states that in the second quarter of 2024, compared to the second quarter of 2023, the total remuneration of employees has increased by 8.9%, including the total salary has increased by 8.9%, while employers’ social contributions have increased by 8 .8%.
The wages of employees in production sectors increased by 3.3%, including the fastest increase was in the water supply, wastewater, waste management and rehabilitation sector – by 12.9% and in mining and quarrying – by 7.7%. In construction, the wages of employees increased by 3.3%.
The wages of employees in service industries increased by 10.2%. Significantly, it has increased in terms of state administration and defense; in the mandatory social insurance sector – by 19.9%, in the education sector – by 16.9%, in the health and social care sector – by 10.8%, as well as in real estate transactions – by 11.8%.
Gross operating income and mixed income decreased by 6.1% in the second quarter, while the balance of production and import taxes and subsidies increased by 13.4%.
2024-08-31 08:39:22