LATVIA – ANALITICS
According to the Central Statistics Office, manufacturing output in October 2022 was 1.4% lower than in October 2021, both on an unadjusted basis and as per calendar data, compared to a year ago. Overall, in January-October this year, manufacturing output was 3.2% higher than in the corresponding period a year ago.
In October this year compared to October 2021, in terms of contribution to the growth of the sector, the production of electrical equipment (+15.1%), beverages (+12.4%), cars and trailers (+5.5%) increased. On the other hand, the production of woodworking (-2.6%), finished metal products (-9.8%), textiles (-30.7%), foodstuffs (-2.2%) and chemicals (-8.7%) decreased.
In October, the annual turnover of the manufacturing industry continued to grow in actual prices, which was largely influenced by a rise in producer prices. The volume of products sold on the domestic market increased by 24.7%, while the volume of products sold for export increased by 10.1%. Sales of electrical equipment, beverages and non-metallic minerals grew faster. On the other hand, sales of textiles and furniture declined.
The manufacturing industry will continue to be affected by the war in Ukraine in the near future, as a result of which the existing supply chains for raw materials will continue to be disrupted. Companies will be affected by rising prices for raw materials, including energy. In this situation, companies that are linked to markets in the countries involved in the conflict must continue to look for new supply opportunities and new markets.
The assessment was prepared by the Analytical Service of the Ministry of Finance and Minister of Economy Edmunds Gergelevičs.
