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

International Internet Magazine. Baltic States news & analytics Friday, 20.09.2019, 23:43

Latvia's GDP to increase 3% this year - European Commission's summer forecast

BC, Riga, 11.07.2019.Print version
According to the European Commission's latest economic growth projections released on Wednesday, Latvia's gross domestic product will increase 3% this year.

The Commission expects Latvia's economic growth to slow down to 2.8% in 2020, down from 4.8% in 2018.


Inflation is projected at 3.1% this year and 2.5% in 2020.


According to the Commission, Lithuania will post the fastest economic growth in the Baltics this year - 3.1%, while in 2020 Lithuania's GDP will increase 2.4 %. Inflation in Lithuania is projected at 2.2% this year and 2.1% in 2020.


GDP growth forecast for Estonia is 2.9% in 2019 and 2.3% in 2020, while inflation - 2.4% and 2.1% respectively.


According to the Commission's summer forecast, the European Union's economic growth is expected to increase 1.4% this year and 1.6% in 2020, while the euro area's GDP will increase 1.2% in 2019 and 1.4% in 2020.


Inflation in the EU is projected at 1.5% in both 2019 and 2020, while in the euro area - at 1.3%.

The Commission also believes that Malta will achieve the fastest economic growth in the bloc this year - 5.3%, followed by Hungary and Poland (4.4% in each).


Commenting the Commission's forecast for Latvia, the Commission's Vice-President for the Euro and Social Dialog Valdis Dombrovskis said that Latvia's economic development this year was still being driven by strong domestic demand and increasing exports. The main risk factors faced by Latvia include labor shortages and uncertainty caused by international trade conflicts.

 






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