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.
Z.Razmusa: Latvijas Banka paaugstina IKP pieauguma prognozes. Saredzam, ka izaugsmes temps arī tuvākajos gados būs virs 3%. pic.twitter.com/ZJiys2AhXY— Latvijas Banka (@LatvijasBanka) December 14, 2018