Latvia Economic Outlook
November 20, 2018The economy lost some steam in Q3, although growth remained solid nonetheless. Weakness within the external sector drove the deceleration, with goods exports growth down markedly from Q2 amid a wider slowdown in EU trade. Dynamics in the domestic economy nevertheless remained healthy and appear to have led the overall third-quarter expansion. Labor market conditions continued to tighten throughout the quarter with the unemployment rate falling to a near 10-year low in September, and likely bolstering private consumption growth in turn. Intensifying inflationary pressures, however, seemingly capped household consumption gains somewhat in Q3, reflected in slowing retail sales growth in September. Meanwhile, Janis Bordans, the leader of the New Conservative Party, was nominated by President Raimonds Vejonis as the new prime minister on 7 November. Despite this, with coalition talks having reportedly stalled in recent days, another candidate will be chosen if Bordans fails form a new coalition government by the 21 November deadline set by the president.
Latvia Economic GrowthGrowth is seen slowing next year due to weakness within the external sector amid cooling global trade and a deterioration in the general EU business environment. However, private consumption growth should remain robust in 2019, underpinned by higher household incomes—partly due to tax code reforms enacted this year—and the continued tightening in labor market conditions. FocusEconomics panelists see GDP increasing 3.4% in 2019, which is unchanged from last month’s forecast, and 3.1% in 2020.
Latvia Economy Data
5 years of Latvia economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.14||0.65 %||Dec 12|
|Stock Market||965||0.17 %||Dec 12|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Latvia Economic News
December 12, 2018
Consumer prices fell 0.1% from the previous month in November, compared to a 0.7% month-on-month increase in October.
December 3, 2018
Industrial output fell 1.9% in October from the same month last year, the second consecutive month of contraction (September: -1.2% year-on-year).
November 30, 2018
A comprehensive GDP release confirmed that annual growth lost some traction in the third quarter, coming in at 4.7% (previously reported: +4.8% year-on-year), down from 5.3% in the second quarter.
November 14, 2018
Consumer prices rose 0.7% over the previous month in October, broadly unchanged from September’s 0.6% month-on-month increase in prices.
November 2, 2018
Industrial output fell 1.2% in September from the same month last year, swinging from a revised 6.8% expansion in August (previously reported: +6.5% year-on-year).