Central bank cuts growth forecast to 1.4%

The Bank of Latvia has reduced Latvia's gross domestic product growth forecast for this year to 1.4%, as the central bank's president Ilmārs Rimšēvičs told reporters on Friday, reported LETA.

"Taking into account the weak GDP data for the first half of 2016, the Bank of Latvia is reducing the GDP projection for 2016, according to seasonally-adjusted data, from 2% to 1.4%," he said.

"In 2017, Latvia's economic growth could reach 3% thanks to increasing activity of projects - in construction and other sectors - that receive European Union funding," said Rimšēvičs.

In June the Bank of Latvia cut the 2016 GDP growth forecast from 2.3% to 2%.

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