We have reduced our GDP growth forecast for 2016 to 2.4%. Private investment activity has become increasingly sluggish and public capital expenditure has been cut by a third as expected. Exports remain stagnant but household consumption has developed at a smart pace, driven by rapidly rising real wages. In both 2017 and 2018 we expect an upswing in GDP growth to 2.6% and 2.9%, respectively, driven by stronger external demand and greater investment activity in both the public and private sectors.

map Latvia
Main Economic Indicators201320142015201620172018
Population, 1000 persons.201319941978...
GDP, real change in %
GDP per capita (EUR at PPP)166001750018600...
Gross industrial production, real change in %-0.9-1.03.6...
Unemployment rate - LFS, in %, average11.910.
Average gross monthly wages, EUR717765818...
Consumer prices, % p.a.
Fiscal balance in % of GDP-0.9-1.6-1.3...
Public debt in % of GDP39.040.736.3...
Current account in % of GDP-2.7-2.0-0.8-0.4-1.9-2.2
FDI inflow, EUR mn743813684...
Gross external debt in % of GDP133.7143.1141.7...

Basic data are continuously updated.

* Forecasts are changed beginning of March, July and November.
See Press Conferences.


LATVIA: EU funds to rekindle investment ahead

Sebastian Leitner
in: Labour Shortages Driving Economic Growth?
wiiw Forecast Report No. Autumn 2016, , pp. 80-82
Details and Buy


Monthly Report No. 7-8/2016

Vasily Astrov, Serkan Çiçek, Rumen Dobrinsky, Vladimir Gligorov, Doris Hanzl-Weiss, Peter Havlik, Mario Holzner, Gabor Hunya, Simona Jokubauskaite, Sebastian Leitner, Isilda Mara, Olga Pindyuk, Leon Podkaminer, Sandor Richter and Hermine Vidovic
wiiw Monthly Report No. 7-8,
25 pages including 1 Table and 1 Figure