Economic development trends in Latvia are ambiguous 31 January 2017
Yesterday during a gross domestic product (GDP) working group meeting, with participation of the Bank of Latvia experts, Fiscal discipline council 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 GDP working group leader Martins Kazāks comments. "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," says M. Kazāks.
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.