Analytics, Economics, Financial Services, GDP, Investments, Latvia

"Latvia’s economy last year rose very well, and also this year, most believably, the rise will be rather good. We have cut the economic growth forecast for this year from 4.2% to about 3%," said Kazaks.

He explained that there are two reasons for this – weakness of investments and reduction of non-resident business in the banking sector.

At the same time, as the labor market continues warming up in Latvia, export rises, the government continues spending, and investments might resume, therefore the economy is still in a strong growth stage.

"Latvia’s main risks are external. There are no large internal imbalance bubbles anywhere," said Kazaks.

As reported, data from the Central Statistical Bureau show that in 2017, as compared to 2016, the economic growth continued and GDP increased by 4.5%.