Macroeconomics review of Latvia


The Latvian economy ranks in Top 100 as one of the biggest world’s economies by nominal gross domestic product and by purchasing parity. Entering the EU, Latvia also became a member of the Economic and Monetary Union (EMU), which is the highest EU member states economic integration. In the same time, EMU is the main instrument of the EU economic policy aims for achieving secure growth and low inflation. After 2008 year’s economic crisis, the Latvian government implemented sharp fiscal adaption measures, which ensured Latvian economy gradual recovery and in 2011 the GDP growth returned to 5,5%. This process put Latvian economy in the EU’s fastest growing economies list beginning. In 2012 GDP growth reached 5,6%, but for 2014 Latvian Ministry of Finance predicts GDP growth until 4,2%. Latvia’s export and import incomes increases yearly. Comparing with 2012 year, inflation climbed to 0.3% and it is likely to gain momentum through the year. Forecasted annual average inflation for 2013 is 0.4%. With economics rapid development in 2013 unemployment level continues to drop off, but employees number increases.

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