Analytics, Baltic States – CIS, Economics, EU – Baltic States, Investments, Latvia

Aiyar did not mention a precise figure. As reported, last year Latvia's gross domestic product increased 2.4%.

According to Aiyar, Latvian exports and investments in Latvia this year will be affected by weak external environment, in particular the economic downturn in Russia. Mitigating factors include the resumption of operations at the metallurgical company Liepajas metalurgs, increased purchasing capacity of residents thanks to low oil prices and actual wages, and monetary policy pursued by the European Central Bank.

More robust growth is expected in the future, provided that external environment improves and investments in Latvia increase.

In the medium term, economic growth in Latvia will be around 4%, but this will require reforms to consolidate Latvia's competitiveness as well as cautious macroeconomic policy.

There are threats to economic growth too. These include economic downturn in Russia and slower economic growth in the euro area. In the medium term, Latvia's growth and competitiveness may be affected if the necessary structural reforms are not carried out.

As reported, the IMF mission arrived in Latvia on February 20 to meet with representatives from the Bank of Latvia, Finance Ministry, Financial and Capital Market Commission, and other institutions.

Latvia was last visited by an IMF mission in December 2014.