## Republic of Latvia: 2017 Article IV Consultation-Press Release; Staff Report

_IMF Staff Country Reports, July 7, 2017_

## Source details

**Canonical URL:** [Republic of Latvia: 2017 Article IV Consultation-Press Release; Staff Report](https://www.imf.org/en/publications/cr/issues/2017/07/07/republic-of-latvia-2017-article-iv-consultation-press-release-staff-report-45050)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/07/07/republic-of-latvia-2017-article-iv-consultation-press-release-staff-report-45050/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/07/07/republic-of-latvia-2017-article-iv-consultation-press-release-staff-report-45050/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/07/07/republic-of-latvia-2017-article-iv-consultation-press-release-staff-report-45050/bundle-manifest.json)

## Bibliographic details
- Published: July 7, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484308042.002

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### 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*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17194.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17194.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/07/07/republic-of-latvia-2017-article-iv-consultation-press-release-staff-report-45050_