Country snapshots 2017-18: Latvia

Stronger growth ahead

Economic growth is projected to pick up strongly as the disbursement of new EU funds increases investment and the recovery in Russia increases exports. Household consumption will remain robust, supported by continued wage growth, although unemployment will remain high. Wage growth is set to exceed productivity growth, which will hold back the improvement of export performance.

The fiscal stance is expansionary, which is appropriate in view of ample spare capacity, and reflects higher expenditure on healthcare and government investment. Strengthening active labour market policies and targeting them on the long-term unemployed would increase employment and make growth more inclusive. Raising the quality of vocational training would boost productivity growth by easing skill shortages.  

GDP growth

2013

Current prices EUR billion

2016

   

2017

% real change

2018

   

22.8 1.1 3.0 3.5

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©OECD Observer No 308 Q4 2016                




Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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