Analytics, Economics, Export, GDP, Latvia

At the beginning of this year, the ministry predicted that Latvia's economic growth will increase by about 4.5%, however, the forecast was cut down to 3.5% in July; the forecast was further lowered to 2.5%.

The Economy Ministry emphasizes that Latvia's 2014 gross domestic product (GDP) growth rate will affect the 2015 growth indicators as well. The ministry forecasts that in total, the GDP could increase by 2.5-3% in 2015.

The ministry reports that the demand for GDP will contribute to the economic growth at the end of this year as well.

Forecasts indicate that the private consumption rate could grow by 2.5% in 2014. The growth will be hindered by a slowdown in employment rate. The amount of investments will be largely affected by the careful crediting policy at commercial banks.

The growth rate for export of goods and services will be moderate in 2014, and could reach 0.7%. Export dynamics will be closely connected with the situation in foreign markets. Despite the slowdown, the economic situation is gradually improving for Latvia in EU export markets. Latvian exporters, who mainly focus on eastern markets, will be affected by a decline in demand in CIS markets.