The Latvian economy advanced 2.9 percent year-on-year in the third quarter of 2019, after a 1.8 percent rise in the previous quarter and upwardly revised from the initial estimate of 2.8 percent. Regarding the production side, the expansion was driven by increases in trade (5.3 percent); real estate activity (3.1 percent) and manufacturing (4.1 percent). On the expenditure approach, main drivers of growth were household consumption (4.9 percent) and gross fixed capital formation (4.8 percent). Regarding foreign net trade, exports of goods and services advanced 5.6 percent while imports increased at a softer 1.0 percent. On a seasonally adjusted basis, the GDP expanded 0.7 percent, in line with the preliminary estimate and compared to a revised 0.8 percent expansion in the previous quarter. GDP Annual Growth Rate in Latvia averaged 4.12 percent from 1996 until 2019, reaching an all time high of 13.90 percent in the first quarter of 2007 and a record low of -16.20 percent in the third quarter of 2009.
GDP Annual Growth Rate in Latvia is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Latvia to stand at 2.40 in 12 months time. In the long-term, the Latvia GDP Annual Growth Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.