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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 16:22

Bank of Latvia: actual GDP growth in 2014 will be 2.8%, inflation 0.7%

BC, Riga, 08.12.2014.Print version
The Bank of Latvia projects that Latvia's actual GDP growth this year will be 2.8%, but in 2015 2.7%, and that inflation will be at 0.7% this year and 1.4% next year, reports LETA.

In September, the Bank of Latvia projected that Latvia's economy will grow 2.9% this year.

 

In a press conference on Friday, Bank of Latvian President Ilmars Rimsevics said that it is already clear that the one of the negative development scenarios is unfolding at the moment – the geo-political situation has substantially deteriorated and economic sanctions have been imposed, which has left a negative impact on the region's economy as well as the national economy.

 

He said that despite the unfavorable external environment, impacted mostly by the weak development of the eurozone and less demand from Russia due to the sanctions, Latvia has still been able to achieve growth of over 2% this year. ''If in previous years Latvia's GDP growth was mainly ensure by the manufacturing, real-estate and energy sectors, then now growth is ensured by sectors orientated more towards domestic demand – trade, construction and services,'' Rimsevics said.

 

Regarding inflation, Rimsevics said that inflation next year will be higher, as an increase in electricity prices is expected, but that the impact on prices could be curbed by the relatively low price of oil.

 






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