RIGA, March 27 (Xinhua) -- Latvia's economic growth rate for this year has been revised to 1.8 percent, lower than the previously projected 2 percent, the Bank of Latvia said on Wednesday.

The bank's economist Uldis Rutkaste said at a news conference the Baltic country's GDP growth for 2025 is forecast at 3.6 percent and 3.8 percent for 2026.

The central bank expects exports to boost Latvia's growth capacity as the economic environment abroad improves.

According to Rutkaste, Latvia's economic growth is expected to decline this year due to less demand from its main trading partners. Despite low inflation promoting a consumption recovery and government spending driving investment, external demand has weakened.

Rutkaste said the central bank has also cut Latvia's inflation forecast for this year to 1.5 percent from the 2 percent projected in December last year.

According to the bank's predictions, significantly lower gas prices are anticipated to be a primary factor in keeping inflation down this year.

Latvia's inflation forecast for 2025 has been revised to 1.9 percent from 2.3 percent with the 2026 forecast remaining at 1.8 percent. Enditem

Related

Go to Forum >>0 Comment(s)