The Bank of Latvia has upgraded the country’s GDP growth outlook for 2023 from the previously expected 0.3% drop to growth of 0.5%, as the head of the central bank’s monetary policy office Uldis Rutkaste reported at a press-conference on Friday, the 31st of March.
He said the recession in Latvia’s economy is over. At the same time, he mentioned that GDP changes are expected rather «cosmetic» this year.
The Bank of Latvia also downgraded GDP growth outlook for 2024 from the previously predicted 4.4% to 3.7%.
Economic growth rate for 2025 has been downgraded from 3.5% to 3.3%.
The average annual inflation outlook for 2023 has been downgraded from 10.9% to 10%.
Rutkaste said the average inflation outlook for 2024 has been downgraded from 4.4% to 2.7%.
The average outlook for 2025 has been downgraded from 3% to 2.6%.
At the same time, the Bank of Latvia has also downgraded the base inflation outlook, which does not include food and energy prices.
The base inflation outlook for 2023 has been downgraded from 7.8% to 7.7%, for 2024 it has been downgraded from 6% to 5.8%, and for 2025 it has been downgraded from 5% to 4.8%.
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