Analytics, Economics, Financial Services, GDP, Latvia

The growth forecast has been raised due to the good growth results in the first quarter and the first half of the year. Strazds believes that Latvia's economy grew by approximately five% in the first six months of the year, writes LETA.

Strazds believes that even if growth in the second half of the year slows down, Latvia's growth in 2012 will still be between three to 3.5%.

GDP growth in Latvia

As reported, this past March, taking into account the situation within the euro-zone and other global growth risks, the Finance Ministry reduced Latvia's macro-economic development forecasts for 2012.

The Finance Ministry predicts Latvia's GDP will increase by two% this year, down from the previous forecast of 2.5%.

Meanwhile, Bank of Latvia President Ilmars Rimsevics believes Latvia's economic growth will surpass three% this year.

Furthermore, the European Commission predicts that Latvia's gross domestic product will increase 2.1% this year, which will be the third highest increase across the European Union.