"The shrinking labour force will continue to drive down unemployment and stoke wage pressures. Inflation is likely to average around 3% in 2017 and stay thereabout in 2018 and 2019 on the back of rapid wage growth. The government deficit is expected to be contained at 1% of GDP in 2018 and 2019 despite the large costs of tax reforms,"a summary of the report (attached) on Latvia said.
✅ Šogad Latvijā ir sagaidāms IKP pieaugums 4.2%, izaugsmi veicina investīciju plūsmas atjaunošanās, spēcīgs iekšzemes & ārējais pieprasījums. Arī 2018-2019 tiek prognozēts samērā straujš ekonomikas pieaugums 3.2-3.5% #ECForecast pic.twitter.com/KjpIZLFppZ— Valdis Dombrovskis (@VDombrovskis) November 9, 2017
Latvia's is part of a generally upbeat assessment of medium-term growth prospects by the Commission.
The euro area economy is on track to grow at its fastest pace in a decade this year, with real GDP growth forecast at 2.2%, substantially higher than expected in the previous spring forecast (1.7%). The EU economy as a whole is also set to beat expectations with growth of 2.3% this year (up from 1.9% in spring).
The European Commission expects growth to continue in both the euro area and in the EU at 2.1% in 2018 and at 1.9% in 2019 (Spring Forecast: 2018: 1.8% in the euro area, 1.9% in the EU).