Latvia Economic Outlook
January 30, 2018After logging an impressive growth rate in Q3, the economy appears to have moderated in the final quarter of 2017, while still growing at a healthy pace. Year-on-year growth in retail sales accelerated for the second consecutive month in November, suggesting that private consumption continued to benefit from a tight labor market and rapidly growing wages. External demand also remained buoyant, with exports jumping from the previous year in both October and November. However, import growth decelerated considerably in both months. Further signs of a possible slowdown in the domestic economy came from the industrial sector: Annual growth in industrial production lost considerable steam in the first two months of the fourth quarter. That said, encouraging signs came from the construction sector as confidence continued to improve in seasonally-adjusted terms in Q4. Furthermore, the construction output surged by a fourth in Q3 over the same quarter of 2016.
Latvia Economic GrowthThis year growth is expected to moderate compared to 2017, but should nevertheless remain solid. Continued wage growth and a further tightening of labor market conditions will underpin household spending, while fixed investment will benefit from inflows of EU funds. Healthy growth and a prudent fiscal stance will, moreover, maintain the debt ratio on a downward path. A possible deterioration in relations with Russia could, however, lead to some financial instability, given the high proportion of foreign-held bank deposits. FocusEconomics panelists expect GDP to increase 3.8% in 2018, up 0.1 percentage points from last month’s forecast, and 3.3% in 2019.
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||1.24||0.65 %||Feb 19|
|Stock Market||1,023||0.17 %||Feb 19|
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
February 12, 2018
In January, consumer prices remained unchanged from the previous month, following December’s 0.1% month-on-month increase.
February 8, 2018
According to a flash estimate released by the Statistical Institute on 30 January, Latvia’s economy lost steam in Q4, following remarkable growth in Q3.
February 7, 2018
Industrial production expanded 5.5% in December compared to the same month last year, above November’s weaker 3.7% year-on-year increase (previously reported: +3.6% yoy).
January 17, 2018
In December, consumer prices rose 0.1% from the previous month, matching November’s increase.
January 10, 2018
Industrial production expanded 3.6% in November compared to the same month last year, below October’s stronger 5.3% year-on-year increase.