Analytics, Banks, Financial Services, GDP, Latvia

International Internet Magazine. Baltic States news & analytics Monday, 28.05.2018, 12:31

Bank of Latvia raises this year's GDP growth forecast to 3.5%-4%

Gleb Vasiljev, BC, Riga, 13.07.2012.Print version
At a press conference yesterday, Bank of Latvia President Ilmars Rimsevics said that the central bank has raised Latvia's GDP growth forecast this year between 3.5 percent to four percent. This past January, the Bank of Latvia predicted that Latvia's GDP will grow 1.3 percent this year.

The central bank points out that albeit the growth of the economy will be more rapid than predicted at the beginning of the year, uncertainty and risks remain high primarily determined by the unstable situation in the European countries facing the debt crisis.

Stronger than expected external demand with the reinforced competitiveness permitted also the participants of the Latvian economy to maintain a positive outlook for the future and achieve a more rapid economic growth at the beginning of the year. With that in view, the projected GDP growth for the year overall has been raised from 1.3 percent to between 3.5 to 4 percent, which will have to be considered as relatively good development against the overall background in Europe, reported NOZARE.LV/LETA.

 It must be taken into account, however, that the debt crisis in Europe has not been solved and it has been factored in into this reviewed forecast that the slowdown in the external demand expected at the beginning of the year has been delayed for the second half of the year, the Bank of Latvia explains.

The Bank of Latvia's inflation projections for 2012 remains unchanged: 2.4 percent annual rise for consumer prices.

 As reported, earlier this month, the Finance Ministry increased this year's GDP growth forecast for Latvia to four percent.

The ministry's growth forecast for 2013 remains at 3.7 percent, while growth in 2014-2015 is predicted at four percent.

The ministry's previous GDP growth forecast for Latvia this year was two percent.

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