Latvia's Economic and Financial Outlook slide image

Latvia's Economic and Financial Outlook

Growth Accelerated in 2018 and Remains Elevated Today Latvia is among the top 5 fastest growing countries in the EU with a 3.1% average growth in the last 6 years. Robust growth is currently supported by strong domestic demand, private investment inflows, the EU funding cycle and favourable foreign trade conditions. Real GDP Growth (%) GDP Growth Composition (%) 3.6 2.9 2.5 2.3 2.5 2 1.7 1.8 1.7 1.2 0.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 5.1 5.7 5.3 4.7 4.3 4.9 4.6 5.1 3.5 3.2 3 2.6 0.7 0.7 2.8 0.6 0.5 0.5 0.3 9.8 0.7 2.6 2.8 0.9 0.9 -2.1 -1.7 -2.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 Y-o-y 2014 2015 ■Private consumption Public consumption Source: Central Statistical Bureau of Latvia 2016 2017 ■Gross capital formation 2018 ■Net exports 2014 2015 Q-o-q Source: Central Statistical Bureau of Latvia Real GDP Growth (%) 6.4% 4.0% 3.0% 2.4% 2.1% 1.9% 4.8% 4.6% 3.2% 2011 2012 2013 2014 2015 2016 2017 2018 2019F Source: Central Statistical Bureau of Latvia, Ministry of Finance 10 4.8% GDP Growth (2018, %) EU-28: 1.9 % Latvia A/A3/A- Austria Estonia Czech France Belgium AA-/A1/AA- AA-/A1/AA- AA+/Aa1/AA+AA+/Aa1/AA+ AA/Aa2/AA AA/Aa3/AA- Finland Source: Eurostat
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