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Latvia: Finance minister's statement

Latvia's gross domestic product in 2001 grew solidly by 7.7%, while average annual inflation remained low at 2.5%. Economic growth was well balanced, as all major sectors of the economy developed successfully. The largest increase was in the service sector - up by 8.3%, while its share in the G...

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Bibliographic Details
Published in:Euromoney 2002-01, p.129
Main Author: Berzins, Gundars
Format: Article
Language:English
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Summary:Latvia's gross domestic product in 2001 grew solidly by 7.7%, while average annual inflation remained low at 2.5%. Economic growth was well balanced, as all major sectors of the economy developed successfully. The largest increase was in the service sector - up by 8.3%, while its share in the GDP further increased to reach 70.4%. The main driving force for the growth has been strong domestic demand, primarily based on growing investment and private consumption. In spite of the weakening demand in Latvia's main export partners, export growth in 2001 reached 11.1%. Not only did the Latvian producers manage to maintain positive export growth to the EU, but also exports to other destinations, including the Baltics and the CIS, grew rapidly. Recovery of external demand in 2002 is likely to lead to better export performance and the Latvian authorities expect the current account deficit to shrink to 8.5% of GDP
ISSN:0014-2433