RIGA, Feb 7 (LETA) – Latvia’s gross domestic product (GDP) is expected to grow 3.5 percent this year, according to the European Commission’s Winter Interim Economic Forecast.Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, describing the situation in Latvia, said that Latvia’s economic growth in 2017 and 2018 will be the steepest growth among the Baltic states. "Latvia’s economic growth is promoted by favorable conditions and the growing domestic demand. However, there will be a bigger shortage of laborforce, and the growth will slow down due to the growing inflation," said Dombrovskis.GDP growth is expected to slow down further to 3.2 percent in 2019, while inflation might still be around 3 percent. According to Dombrovskis, it is important for Latvia to move towards a balanced budget, reducing the national debt, and strengthening economic resilience to possible future risks.According to the European Commission’s representation in Latvia, growth rates for the euro area and the EU beat expectations last year as the transition from economic recovery to expansion continues. The euro area and EU economies are both estimated to have grown by 2.4 percent in 2017, the fastest pace in a decade.This robust performance is set to continue in 2018 and 2019 with growth of 2.3 percent and 2 percent respectively in both the euro area and EU.
Published: 07.02.2018 16:03