In its latest overview of European economies, the IMF said this year it expected Latvia's economy to grow by 3.8% compared with a 3.0% forecast in April.
Similarly next year the IMF predicts 3.9% growth (previous forecast 3.3%) whereas 2019 growth is projected to be 3.5% against a previous estimate of 3.6%.
Encouragingly, growth is also expected in gross investment over the same three year period.
Inflation will be higher than previously predicted, the IMF said, standing at 3.0% both this year and next year before falling to 2.5% in 2019. Unemployment will continue to hover between 8% and 9%.
In other sections of the lengthy report, one of the key findings is that reforms in the judicial system can provide a boost to the economy.
"Greater openness may promote a better judiciary to the extent that investors reward rules-based business environments and businesses adapt to global standards. Import competition in domestic markets may reduce the monopolization of power," the IMF says, using Estonia as a case study.
"Effective institutions, which encompass an effective rule of law, play a key role in promoting more equitable and sustainable growth. A well-documented stylized fact is that societies with high institutional quality tend to be more prosperous," said the IMF report.