OREANDA-NEWS. August 16, 2010. Prime Minister Valdis Dombrovskis and Minister for Economics Artis Kampars informed the mass media about the latest development in the national economy and macroeconomic indicators.

The Prime Minister informed that the provisional data indicate growth of the Latvian economy for the second consecutive quarter. In Quarter 1 growth was 0.3% but in Quarter 2 growth was 0.1% in comparison to Quarter 1. Though this is a small increase, it cannot be disregarded after such a heavy economic downturn.

„The recession is over and on the basis of certain indicators it can be expected that in the second part of the year Latvia's economy will regain growth in terms of both quarterly and annual indicators. This means a more positive gross domestic product, tax income, employment and other rates, “said Prime Minister Valdis Dombrovskis.

According to the theory of economics, if the gross domestic product has increased for two consecutive months, the recession has ended. Increased economic activity in Latvia since spring was proved by several monthly indicators. For instance, in Quarter 2 industrial production increased by 6% in comparison to Quarter 1, retail – by 1.7%; some transport indicators have also improved. The increase in the export volume remains one of the biggest in the European Union. The above points are re-affirmed by excess budget revenues, gradual reduction of unemployment, increase in the price indices, expectation indices according to public opinion surveys of both businesses and households.

In terms of the annual indicators, a small economic downturn still remains but in Quarter 2 the rate was only 3% (in Quarter 1 – 6% but last year – 18%). Several industries show stable growth, but the others have managed to reduce the downturn.