Latvia Economic Outlook
June 26, 2018Economic momentum held up at the start of 2018: The economy expanded robustly in the first quarter, nearly matching the previous quarter’s result. Strong domestic dynamics led the expansion in Q1, propelled by another double-digit expansion in fixed investment, which has benefited from an influx of EU funding. In addition, household consumption growth remained elevated, likely supported by the sustained tightening of labor market conditions; it was complimented by a robust increase in government spending. Meanwhile, sluggish export growth undermined the external sector’s performance in the quarter, with exports plummeting to the lowest level since Q4 2015, amid the broader trade slowdown across the EU. On the political front, on 18 June, Latvia’s anticorruption body asked prosecutors to press charges against Central Bank Governor Ilmars Rimsevics, who has been suspended since February amid bribery allegations.
Latvia Economic GrowthThe short-term outlook for the economy remains bright, underscored by robust domestic demand, which should drive the economy in 2018 on the back of soaring fixed investment and sustained private consumption growth. Nevertheless, a weakening external sector, coupled with a marked cooling in financial sector activity in the face of the ongoing corruption scandal, signals headwinds for growth, which is expected to slow this year. FocusEconomics panelists see GDP increasing 3.7% in 2018, which is unchanged from last month’s forecast, and 3.4% in 2019.
Latvia Economy Data
5 years of Latvia economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.17||0.65 %||Jul 13|
|Stock Market||1,046||0.17 %||Jul 13|
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Latvia Economic News
July 4, 2018
Industrial production declined 1.1% in May from the same month last year, falling to an over-three year low.
June 8, 2018
Consumer prices increased 0.3% from the previous month in May, accelerating marginally from April’s 0.2% increase.
June 4, 2018
Industrial production rose a soft 0.9% in April from the same month last year, accelerating slightly from March’s weaker 0.6% increase.
May 31, 2018
Latvia’s economy started 2018 on a strong note, according to detailed data released by the Statistical Institute on 31 May.
May 10, 2018
Consumer prices increased just 0.2% from the previous month in April, following a much stronger 1.2% month-on-month jump in March.