Macroeconomic Review of Latvia
#71 | 2018-2
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, which currently exceeds the EU average level, has resumed. From 2011-2017, GDP on average increased by 3.5% annually. In 2017, GDP exceeded the 2007 pre-crisis level by 0.7 percentage points.
In 2017, GDP growth rate accelerated. GDP increased by 4.6%, which has been the largest increase over the last 6 years. The accelerated growth in 2017 was affected by the improvement of the situation in the external environment, more intense acquisition of EU structural funds, and the increase in employment and wages.
According to statistical data, at the beginning of 2018 rapid economic growth persists. In the first half of 2018, GDP grew by 4.7%.
The further economic development is dependent on the situation in the external environment and the implementation of reforms. The further economic development of the Latvian economy still will closely be linked to export opportunities. Thus, the greatest risk of growth in Latvia is related to global economic development trends. Especially important is the further development of the EU’s common economic space. The economic advantages of Latvia in the medium-term will mainly be based on the achieved macroeconomic stability, because of which Latvia’s credit ratings have improved, the effectiveness of the planned EU structural fund support programs, and improvements in the business environment.
Previous reports and other publications on economic development can be found here ...