Quarterly growth slows in soon-to-be eurozone member Latvia

Soon-to-be eurozone member Latvia saw its growth slow in the second quarter of the year but remained among the EU's top performing economies, official data showed Friday. Gross domestic product (GDP) rose by a seasonally-adjusted 0.5 percent in the second quarter, down from the 1.4 percent rate in the previous three-month period, Statistics Latvia said. "This shows that economic growth has started losing its steam gradually, most likely owing to weak investments and slower export growth," Swedbank economist Lija Strasuna said in a statement. The largest gains were seen in the service and construction sectors, the statistics office said. On an annual comparison, the economy grew by a seasonally-unadjusted 3.8 percent in the second quarter compared to the same period last year, up from 3.6 percent in the first quarter of 2013. Latvia was the EU's fastest-growing economy in both 2011 and last year, posting GDP growth of more than five percent each year. The finance ministry predicts 4.2 percent growth in 2013. The nation of two million people will begin using the euro as its currency on January 1, 2014 after the EU gave it final approval in July. It will be the 18th member of the eurozone and its second ex-Soviet state, after Baltic neighbour Estonia joined in 2011.