Analytics, Economics, GDP, Inflation, Latvia

As reported, compared to the first quarter of 2011, Latvia's GDP in the first quarter of 2012 has increased by 6.9%. Meanwhile, in comparison with May 2011, consumer prices increased 2.2% in May 2012, according to information from the Central Statistical Bureau.

Evaluating the GDP growth, the prime minister admitted that it is the largest increase in the European Union, writes LETA.

''This shows that we have recovered from the crisis,'' Dombrovskis said.

On the other hand, assessing the inflation figures, Dombrovskis predicted that the with planned reduction of the VAT rates, he hopes that the government will be able to keep the inflation rate under control.