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Tuesday, 19.03.2024, 10:16
European Comission: Latvia posted fastest economic growth in 2017 since 2011
The European Commission points out that global growth, in tandem with a revival of investments, has allowed Latvia to see GDP growth exceed 4% in 2017.
The EC report on Latvia shows that the Commission has raised Latvia's GDP growth figure by 0.3 percentage points. If in the fall of 2017 the EC projected Latvia's economic growth at 4.2% for the year, then the latest forecast has Latvia at 4.5% growth.
''Thanks to a revival in investments, as well as a more favorable global economic growth forecast and an increase in private spending, Latvia's GDP growth in 2017 will reach 4.5%, which is two-times more than in 2016 and the largest growth since 2011,'' the EC points out.
Meanwhile, the EC projects that economic growth this year will be at 3.5%, but in 2019 - 3.2 %. The EC points out that investment volumes are likely to remain at last year's levels, while exports and private spending should see good results, but will be hindered by inflation and a lack of a workforce.
According to the EU, Latvia's unemployment level was at 8.4% in 2017, and will reduce to 7.9% in 2018 and 7.3% in 2019.
The EC points out that Latvia is currently seeing strong economic growth, and that the state is carrying out several important reforms. ''Latvia's economic is strong overall, continue to post stable growth, however, the rapid increase in salaries creates certain risks,'' the EC highlights.