Analytics, Economics, EU – Baltic States, GDP, Latvia
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Friday, 26.04.2024, 16:27
Latvia's GDP to increase 3% this year - European Commission's summer forecast
The Commission expects Latvia's economic growth to slow down
to 2.8% in 2020, down from 4.8% in 2018.
Inflation is projected at 3.1% this year and 2.5% in 2020.
According to the Commission, Lithuania will post the fastest
economic growth in the Baltics this year - 3.1%, while in 2020 Lithuania's GDP
will increase 2.4 %. Inflation in Lithuania is projected at 2.2% this year and
2.1% in 2020.
GDP growth forecast for Estonia is 2.9% in 2019 and 2.3% in
2020, while inflation - 2.4% and 2.1% respectively.
According to the Commission's summer forecast, the European
Union's economic growth is expected to increase 1.4% this year and 1.6% in
2020, while the euro area's GDP will increase 1.2% in 2019 and 1.4% in 2020.
Inflation in the EU is projected at 1.5% in both 2019 and
2020, while in the euro area - at 1.3%.
The Commission also believes that Malta will achieve the
fastest economic growth in the bloc this year - 5.3%, followed by Hungary and
Poland (4.4% in each).
Commenting the Commission's forecast for Latvia, the
Commission's Vice-President for the Euro and Social Dialog Valdis
Dombrovskis said that Latvia's economic development this year was still
being driven by strong domestic demand and increasing exports. The main risk
factors faced by Latvia include labor shortages and uncertainty caused by
international trade conflicts.