Latvia's economy is set to be one of the best-performing in the European Union over the next couple of years, according to latest predictions from the European Commission released November 9.
"The confluence of thriving consumption, greater foreign demand and a strong rebound in investment is set to push Latvia’s GDP growth above 4% in 2017. Once the initial boost from the investment recovery wanes, growth should ease but remain over 3% in 2018 and 2019, due to strong consumption and improving external demand," the Commission says in its Autumn 2017 forecasts, released in Brussels.
"The shrinking labour force will continue to drive down unemployment and stoke wage pressures. Inflation is likely to average around 3% in 2017 and stay thereabout in 2018 and 2019 on the back of rapid wage growth. The government deficit is expected to be contained at 1% of GDP in 2018 and 2019 despite the large costs of tax reforms," a summary of the report (attached) on Latvia said.
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