The GDP Working Group is the second of the main working groups of the Fiscal Council. It comprises the following members of the Council: Martins Kazaks (chair), Ülo Kaasik and Morten Hansen.
Its main task is an independent evaluation of the Draft budgetary plan of the government for the next year and following two years. This includes an assessment of the development of nominal and real GDP, of potential growth, of forecasted budget reveneue and spending as well as an assessment of the government structural balance.
On 30 January 2017 this year's first GDP working group meeting was held with participation of the Bank of Latvia experts. Working group discussed the trends in the macroeconomic development of Latvia. Despite the prevailing political uncertainty, the economic activity and sentiment in the major Latvia’s export partners' economies is rather good, and Latvian exports last year showed good results. The situation in the labour market is also rather stable: income has been rising, and consumption rose moderately, too. At the same time in some sectors, such as construction and transport services, a considerable downturn is observed. The situation in the investment sector is particularly problematic: the current downturn in investment threatens our exporters' competitiveness in the future. Thus, it is of great importance, how quickly and how effectively the structural funds will enter Latvia’s economy. Meeting minutes. In February Fiscal discipline council will assess the Ministry of Finance’s macroeconomic forecast for 2016-2020 that afterwards will be used as a basis for drafting the state budget for the mentioned period. Before commencing drafting the budget, the Ministry of Finance must obtain Fiscal discipline council’s endorsement for the macroeconomic development scenario.
On 1 June 2017 this year's second GDP working group meeting was held. Council members discussed current economic developments in Latvia with the Bank of Latvia representatives Igors Kasjanovs and Konstantīns Beņkovskis, incl. macro-fiscal impact assessment of several proposed tax reform's measures. Meeting minutes.
16 October 2014 meeting minutes available in Latvian.
Last modified : 11 September 2017