Analytics, Economics, EU – Baltic States, GDP, Latvia

Valdis Dombrovskis, the European Commission’s Vice President for the Euro and Social Dialogue who is also in charge of the bloc’s financial stability, financial services and the Capital Markets Union, put down the slowdown of Latvia’s economic growth to a drop in investment, linked to short-term delays in the use of EU investment funds.

Dombrovskis said that the changeover to the EU’s new programming period 2014-2020 had resulted in similar problems in practically all new EU member states.

The commissioner also noted that last year economic growth was fueled by private consumption and export growth.

The European Commission projects Latvia’s GDP growth to accelerate to 2.8% this year and 3% next year as investment bounces back, consumption continues to grow and the situation in Latvia’s key export markets improves.

On the whole, the European economy is recovering, but the economies of European countries need to become more competitive and adaptable to changeable conditions, Dombrovskis said. To achieve this, it is necessary to carry through with structural reforms and make their benefits felt by all citizens of the bloc.