Latvia posted fastest economic growth last year since 2011 - European Commission

  • 2018-03-08
  • LETA/TBT Staff

RIGA - Latvia posted its fastest economic growth last year since 2011, according to a report from the European Commission on Latvia.

The European Commission points out that global growth, in tandem with a revival of investments, has allowed Latvia to see GDP growth exceed 4 percent in 2017.

The EC report on Latvia shows that the Commission has raised Latvia's GDP growth figure by 0.3 percentage points. If in the fall of 2017 the EC projected Latvia's economic growth at 4.2 percent for the year, then the latest forecast has Latvia at 4.5 percent growth.

''Thanks to a revival in investments, as well as a more favorable global economic growth forecast and an increase in private spending, Latvia's GDP growth in 2017 will reach 4.5 percent, which is two-times more than in 2016 and the largest growth since 2011,'' the EC points out.

Meanwhile, the EC projects that economic growth this year will be at 3.5 percent, but in 2019 - 3.2 percent. The EC points out that investment volumes are likely to remain at last year's levels, while exports and private spending should see good results, but will be hindered by inflation and a lack of a workforce.

According to the EU, Latvia's unemployment level was at 8.4 percent in 2017, and will reduce to 7.9 percent in 2018 and 7.3 percent in 2019.

The EC points out that Latvia is currently seeing strong economic growth, and that the state is carrying out several important reforms. ''Latvia's economic is strong overall, continue to post stable growth, however, the rapid increase in salaries creates certain risks,'' the EC highlights.