Latvia Economic Outlook
January 29, 2019Following months of uncertainty and two unsuccessful attempts to form a government by nominees from the New Conservative Party and the populist KPV, the government led by Krisjanis Karins—the leader of New Unity which won only 6.7% of the vote—was approved by parliament on 23 January. According to the government declaration, the center-right coalition government will maintain the country’s pro-Western course and focus on strengthening its distressed financial system. It has also pledged to reduce income inequality and increase competitiveness by enhancing social policies and implementing healthcare, education and labor taxation reforms, while maintaining strict fiscal discipline and targeting a budget surplus. Meanwhile, against this backdrop, the economy seems to have finished 2018 on a strong footing, although growth likely lost some traction in Q4. The overall expansion appears to have been driven by strong growth dynamics on the domestic front as tighter labor market conditions likely bolstered private consumption.
Latvia Economic GrowthGrowth is set to decelerate this year partly due to softer export demand amid elevated global trade tensions and a deterioration in the general EU business environment. Furthermore, increasing labor shortages and slow productivity growth are likely to weigh on firms’ expansion plans. Nevertheless, household spending should increase at a robust pace, propped up by a tightening labor market. This, together with solid investment growth, should spearhead the overall expansion. Met the why particular panelists see GDP increasing 3.5% in 2019, up 0.1 percentage points from last month’s forecast, and 3.2% in 2020.
Latvia Economy Data
5 years of Latvia economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.14||0.65 %||Jan 30|
|Stock Market||987||0.17 %||Jan 30|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Latvia Economic News
April 15, 2019
Consumer prices rose 1.1% from the previous month in March, accelerating sharply from February’s 0.1% increase.
April 8, 2019
According to Latvia’s Central Statistical Bureau, industrial output dropped 3.2% in working day-adjusted year-on-year terms in February, an over five-year low and a steeper decline than January’s 1.8% fall.
March 15, 2019
Consumer prices rose 0.1% from the previous month in February, moderating from January’s 0.5% increase.
March 5, 2019
According to Latvia’s Central Statistical Bureau, industrial output fell 1.8% in working day-adjusted year-on-year terms in January, compared to a strong 4.5% expansion in December.
March 1, 2019
According to comprehensive national accounts data released by the Statistical Institute on 1 March, economic growth reached 5.1% on an annual basis in the final quarter of 2018 (previously reported: +5.0% year-on-year), accelerating from the third quarter’s revised 4.5% expansion (previously reported: +4.8% yoy).