Macroeconomic Review of Latvia
#73 | 2019-2
The regular Macroeconomic Review prepared by the specialists from the Ministry of Economics is now available for your evaluation. Such Reviews were published traditionally quarterly since 1999. The present Review, just like the previous ones, provides an assessment of the country’s economic situation and policy, as well as gives perspectives of the development of economy.
In Latvia, stable economic growth that exceeds the EU average resumes. From 2011-2018, GDP on average increased by 3.5% annually.
In 2017-2018, economic growth rate accelerated. GDP grew by 3.8% and 4.6%, respectively. Accelerated economic growth was facilitated by improvements in the external environment, increased absorption of EU structural funds, and rising employment and wages.
In 2019, economic growth has become more moderate. In the first half of the year, GDP grew by 2.3%. The slight economic slowdown was driven by both internal factors (e.g. increased use of EU investment funds, developments in the financial sector) and external factors (e.g. review of global trade tensions, Brexit, slower growth in other EU countries). It is anticipated that the above-mentioned global factors will also affect Latvia’s economic growth in the second half of 2019 and 2020, negatively impacting Latvia’s export capacity. At the same time, positive development trends are expected to be observed in commercial services and other internal demand-oriented sectors of the economy.
According to the forecasts by the Ministry of Economics, GDP growth in 2019 could reach 2.5%.
Previous reports and other publications on economic development can be found here ...