RIGA — Latvia’s recession-battered economy continued to contract in the first three months of 2010, though at a slightly less torrid pace in previous quarters, while seasonally-adjusted data shows a slight renewal in growth when compared with the fourth quarter of 2009.

The statistics agency announced Monday that gross domestic product (based on a flash estimate) fell 6 percent in the quarter on an [private_supervisor]annual basis — an alarming decline in and of itself, but rather moderate compared to some of the annual results Latvia saw last year. In the third quarter 2009, for example, the annual decline in GDP was 19 percent.

On a seasonally-adjusted basis, the economy grew 0.3 percent in the first quarter compared with the last four months of 2009, perhaps the best sign that one of Europe’s basketcase economies has passed its lowest point and is slowly rejuvenating.

“This is the first growth since the end of 2007,” Zigurds Vaikulis, head of analysis at Parex Asset Management, told the FinanceNet portal. “Current economic activity data, together with business confidence indicators, suggest that Latvia’s economy will continue growing slowly in the next quarter.”

The statistics bureau said that manufacturing was up 9.6 percent annually in the first quarter, while many sectors, including construction, contracted.

The results are based on a flash estimate, and will likely be revised by the time fuller data are released next month.

Still, the finance ministry welcomed the data, claiming it proves that the country’s economic decline halted in the first quarter.

“These statistics are the first serious confirmation that the course taken by Latvia’s government — a renewal of economic growth through exports — is working,” said the ministry in a statement. “Latvia, having carried painful and unpopular reforms, has reduced labor costs, which in turn has facilitated the growth of Latvia’s competitiveness in the region.”

The ministry stressed that the country has still not overcome the crisis in full but that the data clearly show it is “headed in the right direction.”

GDP fell 18 percent last year, and some 190,000 people still lack jobs. According to Eurostat methodology, Latvia has the highest level of unemployment in the European Union.

Economists expect the economy to fall a further 2 percent this year and resume growth in 2011. [/private_supervisor] [private_subscription 1 month]annual basis — an alarming decline in and of itself, but rather moderate compared to some of the annual results Latvia saw last year. In the third quarter 2009, for example, the annual decline in GDP was 19 percent.

On a seasonally-adjusted basis, the economy grew 0.3 percent in the first quarter compared with the last four months of 2009, perhaps the best sign that one of Europe’s basketcase economies has passed its lowest point and is slowly rejuvenating.

“This is the first growth since the end of 2007,” Zigurds Vaikulis, head of analysis at Parex Asset Management, told the FinanceNet portal. “Current economic activity data, together with business confidence indicators, suggest that Latvia’s economy will continue growing slowly in the next quarter.”

The statistics bureau said that manufacturing was up 9.6 percent annually in the first quarter, while many sectors, including construction, contracted.

The results are based on a flash estimate, and will likely be revised by the time fuller data are released next month.

Still, the finance ministry welcomed the data, claiming it proves that the country’s economic decline halted in the first quarter.

“These statistics are the first serious confirmation that the course taken by Latvia’s government — a renewal of economic growth through exports — is working,” said the ministry in a statement. “Latvia, having carried painful and unpopular reforms, has reduced labor costs, which in turn has facilitated the growth of Latvia’s competitiveness in the region.”

The ministry stressed that the country has still not overcome the crisis in full but that the data clearly show it is “headed in the right direction.”

GDP fell 18 percent last year, and some 190,000 people still lack jobs. According to Eurostat methodology, Latvia has the highest level of unemployment in the European Union.

Economists expect the economy to fall a further 2 percent this year and resume growth in 2011. [/private_subscription 1 month] [private_subscription 4 months]annual basis — an alarming decline in and of itself, but rather moderate compared to some of the annual results Latvia saw last year. In the third quarter 2009, for example, the annual decline in GDP was 19 percent.

On a seasonally-adjusted basis, the economy grew 0.3 percent in the first quarter compared with the last four months of 2009, perhaps the best sign that one of Europe’s basketcase economies has passed its lowest point and is slowly rejuvenating.

“This is the first growth since the end of 2007,” Zigurds Vaikulis, head of analysis at Parex Asset Management, told the FinanceNet portal. “Current economic activity data, together with business confidence indicators, suggest that Latvia’s economy will continue growing slowly in the next quarter.”

The statistics bureau said that manufacturing was up 9.6 percent annually in the first quarter, while many sectors, including construction, contracted.

The results are based on a flash estimate, and will likely be revised by the time fuller data are released next month.

Still, the finance ministry welcomed the data, claiming it proves that the country’s economic decline halted in the first quarter.

“These statistics are the first serious confirmation that the course taken by Latvia’s government — a renewal of economic growth through exports — is working,” said the ministry in a statement. “Latvia, having carried painful and unpopular reforms, has reduced labor costs, which in turn has facilitated the growth of Latvia’s competitiveness in the region.”

The ministry stressed that the country has still not overcome the crisis in full but that the data clearly show it is “headed in the right direction.”

GDP fell 18 percent last year, and some 190,000 people still lack jobs. According to Eurostat methodology, Latvia has the highest level of unemployment in the European Union.

Economists expect the economy to fall a further 2 percent this year and resume growth in 2011. [/private_subscription 4 months] [private_subscription 1 year]annual basis — an alarming decline in and of itself, but rather moderate compared to some of the annual results Latvia saw last year. In the third quarter 2009, for example, the annual decline in GDP was 19 percent.

On a seasonally-adjusted basis, the economy grew 0.3 percent in the first quarter compared with the last four months of 2009, perhaps the best sign that one of Europe’s basketcase economies has passed its lowest point and is slowly rejuvenating.

“This is the first growth since the end of 2007,” Zigurds Vaikulis, head of analysis at Parex Asset Management, told the FinanceNet portal. “Current economic activity data, together with business confidence indicators, suggest that Latvia’s economy will continue growing slowly in the next quarter.”

The statistics bureau said that manufacturing was up 9.6 percent annually in the first quarter, while many sectors, including construction, contracted.

The results are based on a flash estimate, and will likely be revised by the time fuller data are released next month.

Still, the finance ministry welcomed the data, claiming it proves that the country’s economic decline halted in the first quarter.

“These statistics are the first serious confirmation that the course taken by Latvia’s government — a renewal of economic growth through exports — is working,” said the ministry in a statement. “Latvia, having carried painful and unpopular reforms, has reduced labor costs, which in turn has facilitated the growth of Latvia’s competitiveness in the region.”

The ministry stressed that the country has still not overcome the crisis in full but that the data clearly show it is “headed in the right direction.”

GDP fell 18 percent last year, and some 190,000 people still lack jobs. According to Eurostat methodology, Latvia has the highest level of unemployment in the European Union.

Economists expect the economy to fall a further 2 percent this year and resume growth in 2011. [/private_subscription 1 year]

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