Analytics, Economics, GDP, Latvia

Although the minister said he did not want to engage in guessing, he projected that the growth of Latvia’s GDP did not exceed 1.5% in 2016.

Aseradens explained that growth was so weak because the inflow of investment was weak and the absorption of EU funding was not fast enough. Export growth was also weaker than expected. Although export grew in terms of volume, low prices reduced its monetary value.

The economics minister projected that the three coming years would be challenging to the Latvian economy. Large amounts of money will flow into construction, ensuring that annual GDP growth is at least 3%.

As reported, in the first nine months of 2016, Latvia’s GDP grew by 1.4% y-o-y in constant prices.

According to bank analysts’ latest forecasts, Latvia’s GDP probably grew by 1-1.6% in 2016.