Republic of Latvia: 2017 Article IV Consultation-Press Release; Staff Report
IMF Staff Country Reports, July 7, 2017
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- Republic of Latvia: 2017 Article IV Consultation-Press Release; Staff Report
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Bibliographic details
- Published: July 7, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484308042.002
Key findings
- Latvia’s economic growth eased to 2 percent in 2016.
- Gross investment contracted by 11.7 percent in 2016.
- The current account recorded a surplus of 1.5 percent in 2016.
- Terms of trade improved by over 4.7 percent in 2016.
- Growth is expected to pick up to 3.2 percent in 2017.
Drivers of 2016 performance
- Significant contraction in gross investment (11.7 percent) driven by lower than expected absorption of European Union (EU) funds.
- Drag from net exports: import volume growth accelerated markedly while export growth remained modest.
- Improvement in the terms of trade, driven largely by falling energy prices, supported a current account surplus despite strong import growth.
Outlook and projections
- Projected growth of 3.2 percent in 2017 is expected to be supported by:
- An accelerated pace of disbursement of EU funds.
- Continued robust private credit growth.
Analytical emphasis and thematic coverage
- Subject areas highlighted: Credit, Economic sectors, External debt, Fiscal policy, Informal economy, Money, Production, Total factor productivity.
- Keywords associated with the consultation: balance of payments, CR, Credit, credit growth, current account, EU fund, growth, IMF staff estimate, Informal economy, ISCR, Latvia, liability position vis-à-vis nonresident, Total factor productivity, Western Europe, World Bank-International Monetary Fund mission.
Republic of Latvia: 2017 Article IV Consultation-Press Release; Staff Report — July 7, 2017
Content in this bundle
- Country Report