Latvian Q2 GDP up 5.3 pct on year

The Latvia’s statistics office has released its estimate for Q2 2011 GDP growth today, showing that the Latvian economy has grown 5.3% year-on-year, reports news2biz.

More encouragingly, the quarter-on-quarter growth has reached 2.2%, finally picking up speed after two quarters of increasingly worse performance.

Much of the GDP growth comes from a notably increased industrial output: 13% up y-o-y in Q2. Manufacturing showed the highest growth at 15.5% y-o-y.

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The growth of foreign trade slowed down

According to Statistics Estonia, in June 2011, exports from Estonia amounted to 947 million euros and imports to Estonia to 1 billion euros at current prices. Exports increased by 43% and imports by 33% compared to June of the previous year.

Due to a faster growth in exports compared to imports, also the foreign trade deficit decreased. In June this year, the foreign trade deficit accounted for nearly 60 million euros compared to 93 million euros in June 2010. This year, exports grew the most (73%) in March, and imports grew the most in April (67%) compared to the same month of the previous year.

In exports in June, the biggest shares were held by machinery and equipment (29% of Estonia’s total exports), mineral products (incl. motor spirits, fuel oils and electricity) (14%), and metals and products thereof (10%). Compared to June of the previous year, the exports of machinery and equipment and the exports of mineral products increased the most (91% and 53%, respectively).

In June the biggest shares of imports were held by machinery and equipment (30% of Estonia’s total imports), mineral products (14%), and agricultural products and food preparations (11%). Compared to June 2010, the arrivals of machinery and equipment as well as mineral products increased the most (79% and 20%, respectively). The arrivals of raw materials and products of chemical industry also increased significantly (39%).

The first place among the destination countries of exports was held by Sweden (17% of Estonia’s total exports), followed by Finland (16%) and Russia (10%). Compared to June of the previous year, exports increased the most to Sweden and Russia (by 71 and 29 million euros, respectively). Electrical equipment, wood and products thereof, and furniture were mainly exported to Sweden and Finland. Mechanical and electrical equipment were mainly exported to Russia.

The largest amounts of goods were imported from Finland (14% of Estonia’s total imports), followed by Latvia and Sweden (12%, both). Compared to the same month of the previous year, the arrivals of goods from Latvia and Sweden increased the most (by 37 million euros in case of both). From Finland and Sweden, mainly electrical equipment was imported, from Latvia – fuels, and wood and products thereof.

During the first half of this year, the turnover of exports increased by 54% and that of imports by 49% compared to the same period last year.

In June compared to May, exports decreased by 15% and imports by 12%. Partly, it was also due to the different number of working days.

Estonia’s trade by months, 2008–2011

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