GDP working group discusses also on tax elasticities issues within economic cycle  30 January 2019

On 30 January 2019 this year's first GDP working group meeting was held together with experts from the Bank of Latvia. The working group discussed current Latvia's macroeconomic developments, incl. matters regarding economic cycle. During the meeting, there was a discussion on the Latvia's potential and real GDP growth, its limitations and stimulus, and the impact on the development of the economic cycle and output gap in the upcoming years.

The discussion of the working group also reflected the topicality of the formation of the new government, as well as the expected annual endorsement procedure of the official macroeconomic forecasts of Latvia within the framework of the Stability Programme at the beginning of February.

Morten Hansen, the Head of working group, notes that the last but not least issue of the working group discussions was on tax elasticity impact issues in a downward economic cycle.