Latvia recovered from the economic crisis by taking decisive measures and is set to grow by round 3% in the short run. Caught up in the economic crisis, Latvia embarked on a rigorous reform programme supported by the EU-IMF financial assistance, which led to a swift rebalancing of the economy and return to economic growth in 2011. After some moderation in 2014 and 2015 due to external factors, Latvia’s economy is set to grow by around 3 % in 2016-2017. Government debt was estimated at 36.7 % of GDP at the end of 2015. The government’s budgetary position is under control with a fiscal deficit of 1 % of GDP projected for 2016.
Read a complete analysis of Latvia's economy in the country report 2016 [2 MB]
2015 recommendations in brief
The Commission has made four country-specific recommendations to Latvia to help it improve its economic performance. These are in the areas of: public finances; education and research and innovation; labour market and health; public administration and justice system.