Following a slowdown in 2014, Latvia’s economic growth is expected to pick up again, in 2015 and 2016. Domestic demand is projected to be the key growth driver in 2015-16. Unemployment is estimated to fall over the next two years, amid some rebound in labour demand. Inflation is expected to remain low in 2015 and 2016, reflecting oil price effects. Imports are set to rise faster than exports in volume terms but the current account deficit is likely to remain relatively small due to terms of trade gains. The general government deficit is projected to remain low in 2015 and 2016 and public debt is projected to decline through to 2016.
Read a complete analysis of Latvia's economy in the country report 2015 [518 KB]
The Commission has made five country-specific recommendations to Latvia to help it improve its economic performance, which have been approved by all EU member states. These are in the areas of: public finances; competitiveness; social inclusion; energy; efficiency of the public administration.