Latvian industrial output 3.7 percent higher in H1

In the first half of 2015, Latvia raised its industrial output by 3.7 percent against the same period last year in constant prices, the national statistics office reported Monday citing calendar-adjusted data.

That growth included a 5.3 percent increase in manufacturing and an 11.3 jump in mining and quarrying. Meanwhile, electric power and gas supply dropped 4.3 percent year-on-year, according to the statistics office's data.

The growth of Latvia's industrial output in the first half of this year was driven primarily by the metalworking sector, the statistics office said, although it does not release the sector's data. Also, manufacturers of computers and electronic and optical equipment stepped up production by 57.4 percent and a 14 percent increase was recorded in furniture production.

Meanwhile, manufacture of clothing slowed 17.6 percent and textiles production was down 15.1 percent. Producers of non-metallic minerals reduced output by 8.1 percent, and food production declined 6 percent against the first half of 2014.

Peteris Strautins, an economist at Latvia's DNB Bank, commented that, although to a great extent coincidentally, metal production and mechanical engineering were likely to remain the main drivers of growth this year, but that the mechanical engineering industry's ability to recover from shocks in Eastern markets proved that it was worth investing in industries with higher growth potential regardless of the market situation. Endit