The industrial statistics figures for May of this year amaze by the rates of growth. Time to talk about industrial revolution, about re-education of pen pushers and agrarians into proletarians.
Against the same period a year ago in May 2016 the production output jumped by 5.1%. The industrial flagship – processing industry – grew by sizeable 5.3%, energy industry showed a growth of 4.8%.
The record – breaking rise showed the manufacture of computers, electronic and optic produce — by 24.8%; fabricated metal goods — by 19.6%. The number of repaired ships, machine-tools and of other industrial facilities showed a growth of 17.1% against the same month of the year 2015. Woodworking performed not bad, by yielding a 6-percent growth.
As a result in the I quarter of 2016 the level of industrial production in Latvia for the first time notably exceeded the pre-crisis level of the beginning of 2008. In other words, we can state that the plants and factories have overcome the severest crisis in recent history of Latvia. Contrary to the same real estate.
For that the Latvian workers, engineers and providers should be thankful to the European buyers. In the annual quantities the export of processing industry toward the eurozone grew by 9.9%, while outside the eurozone fell by 4.7%. Which is quite natural in the light of large - scale devaluation of the rouble, grivna, tenge and of other free floating currencies.
Wish for rise, be prepared for fall. Despite rosy May indices, uncertainty lies ahead of the Latvian industrial production. High spirits of the Latvian producers in June slightly improved, the eurozone Purchasing Managers’ Index (PMI) also showed a growth, but the external demand was crippled by unexpected results of the referendum for the exit of Great Britain from the EU. Brexit can strike a painful blow on bilateral UK-LV trading relations, as well as reach the Latvian manufacturers indirectly — by dampening activities in continental Europe. Apart of decrease in demand, the prevailing uncertainty also pulled over sectoral investments much-needed for economics.
Generally speaking, one can forecast with a high degree of probability that the growth of Latvian industry would be unstable and, in general, unimpressive. However, the good news is that we still talk about growth, but not about fall.