Latvia's economic growth to exceed EU average this year - Dombrovskis

  • 2024-05-15
  • LETA/TBT Staff

RIGA - Latvia's economy will grow by 1.7 percent this year, exceeding the European Union (EU) average, according to forecasts by the European Commission (EC), says Valdis Dombrovskis (New Unity), the EC's Executive Vice President for Economic Affairs.

Maija Celmina, an adviser to the commissioner, told LETA that Dombrovskis notes that economic growth in Latvia will be boosted by an increase in real incomes of the population - household purchasing power and private consumption will increase as inflation falls sharply and wage growth continues.

Dombrovskis estimates that the economy will receive an additional boost from EU funds and investments under the Recovery and Resilience Plan.

He notes that inflation in Latvia will fall to 1.6 percent, below the EU average of 2.7 percent, as energy prices fall and other consumer price categories decline.

Dombrovskis added that according to the EC's spring economic forecast, the EU economy will continue to grow relatively slowly this year, although some positive dynamics are visible - the growth rate is projected at 1 percent this year and up to 1.6 percent next year.

The EC forecasts that Lithuania's economy will grow by 2 percent this year, while Estonia is the only EU Member State forecast to experience a recession of 0.5 percent this year.