Macroeconomic Review of Latvia
#70 | 2018-1
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 has now resumed. Currently, the growth rates exceed the EU average levels. From 2011 to 2017, GDP on average grew by 3.5% annually. In 2017, GDP exceeded the pre-crisis level of 2007 by 0.8%.
In 2017, the growth rate accelerated; GDP rose by 4.5%, which has been the sharpest growth rate over the last six years. Such growth in 2017 was mainly facilitated by the improvement of situation in external environment, more intense acquisition of EU structural funds, and the rise in employment and wages.
Statistical data show that accelerated economic growth also continues at the beginning of 2018. In the 1st quarter of 2018, GDP increased by 4.3%.
Further development of the economy depends on the situation in the external environment and the progress of reforms. Further development of the Latvian economy still will be closely related to export opportunities. Thus, the greatest risk for Latvian growth is related to the development of global economy. Further development of the EU's common market is also of vital significance. The economic benefits of Latvia in the medium term will mainly be based on the achieved macroeconomic stability, which has resulted in improvement of Latvia's credit ratings, as well as on the effectiveness of the planned support programmes of the EU structural funds and improvements in the business environment.
Previous reports and other publications on economic development can be found here ...