Bank of Latvia ups 2019 GDP growth forecast to 3.5%

On December 14 the Bank of Latvia upped the country's GDP growth forecast for 2019 to 3.5%. 

The country's central bank told the press that GDP growth will stay above 3% within the next few years, and according to the newest forecasts this year the GDP will grow by 4.9% as opposed to the June forecast of 3.9%.

Meanwhile the next year's forecast of 3.5% growth is opposed to the June forecast of 3%. 

The inflation forecast for 2018 is set at 2.6% and 2.9% for 2019. 

Zoja Razmusa, the vice-head of the Bank of Latvia, says that an annual inflation of close to 3% shows that Latvia currently has a healthy economy and that the figure reflects increasing incomes 

The bank also pointed out that the government has to continue work on meeting Moneyval recommendations over anti-money laundering and counter-terrorism financing, so that the country is not put on the so-called "grey list" that would negatively affect economic growth.

Razmusa said that it's likewise important to adopt a budget for 2019 as soon as possible; and that if the current budget is not adjusted, Latvia will become the only Baltic country running a budget deficit and that would run contrary to fiscal discipline practices. 

The central bank likewise encourages continuing work on reforms and investing in education as well as R&D. 

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