Latvian industrial output increases first time in 21 months

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Latvia’s industrial production rose in January from a year earlier, the first annual increase in 21 months, as rising output in electricity and natural gas, reported Bloomberg.

Production adjusted for working days grew 5.7 percent, after a 3.6 percent slump in December, Statistics Latvia said. Industrial output fell a seasonally adjusted 1.6 percent in the month.

External demand is leading a recovery in Latvian production after government spending and wage cuts weakened domestic consumption. Exports grew an annual 4.4 percent in December, the first increase in 14 months. Retail sales grew a seasonally adjusted 4 percent on the month in January, the biggest monthly increase since December 2006.

The economy contracted a preliminary 17.7 percent in the fourth quarter, the steepest decline in the EU, as consumer spending slumped, credit evaporated and manufacturing dropped.