European Commission’s representation in Latvia reports that this institution presented its spring economic outlook on Monday, the 15th of May.
Executive Vice-President of the European Commission Valdis Dombrovskis explains the commission’s spring economic forecast for Latvia: “European Union’s economy will grow by 1% this year. The main reason for the slow economic growth is the Russian-Ukrainian war and the consequences from it. However, when compared with previous outlooks, economic indexes have improved slightly. Latvia’s economy will increase by 1.4% this year – slightly ahead of EU’s average index and
with a higher growth rate than the rest of Baltic States.
It is expected the gradual reduction of inflation will promote private consumption in the second half of the year. More active EU funding use will help boost investments.
For comparison, this year in Lithuania the economy will grow by 0.5%. Estonia, on the other hand, will likely experience a 0.4% recession.
Inflation in the EU and Baltic States will gradually go down, but it will still remain on a relatively high level. Inflation in all three Baltic States is expected to reach 9.2%-9.3%, which is significantly above EU’s average index of 6.7%.”
Also read: Drop in Latvia’s industrial sector more rapid than average in Europe