Page 56 - CE Outlook Regions 2023
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closing down for the winter. The Hotel Association warned of great
uncertainty in the coming months.
3.4 Real economy - Latvia
3.4.1 Retail
Retail sales in Latvia rose by 5.8% from a year ago in October 2022,
following a downwardly revised 1.2% increase in the previous month. It
was the strongest growth in retail activity since March, as higher sales
of non-food products (14.9%) and automotive fuel (2.7%) more than
offset decreases in those of food (-3.8%). On a seasonally adjusted
monthly basis, retail sales went down by 0.8%, after increasing 1.2% in
the previous month.
3.4.2 Banks
Despite the shock from the war, there have been limited capital outflows
from the three Baltic states following the war, and the corporate sector
remains robust. Baltic banks are well capitalised and businesses
maintain substantial cash reserves.
The Baltic banking system remained stable throughout 2022 despite
the heavy impact of war on the local economies.
3.4.3 Industry
Industrial production was edging down in the Baltics at the end of 2022
and will likely stagnate in the first half of 2023.
56 CE Outlook 2023 www.intellinews.com
