RIGA, June 16 (Xinhua) -- The Bank of Latvia has cut the Baltic country's economic growth forecast (GDP) for this year to 2 percent from a previous estimate of 2.8 percent, the bank's representative Uldis Rutkaste said at a news conference on Tuesday.
Meanwhile, Latvia's GDP growth forecast for 2027 has been lowered to 2.4 percent from 2.9 percent. In 2028, the economy is expected to grow by 3 percent, down from 3.2 percent projected last December.
According to the central bank, the outlook for economic growth is worsening due to external shocks, which are weakening external demand and increasing caution among consumers and investors.
On the other hand, investments made in the production of military and dual-use goods, as well as the implementation of other major state projects, are an increasingly important growth pillar, allowing the bank to maintain a moderate growth forecast. Latvia's GDP growth is therefore expected to be slower, but still positive, in the coming years.
The Bank of Latvia also noted that the labor market remains tense, although labor demand is slightly decreasing due to weaker economic growth. Enditem
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