Latvia, the 6th Fastest Growing Economy in the Eurozone

Latvia-the-6th-fastest-growing-economy-in-the-EurozoneThe EY Eurozone Economic Forecast revealed Latvia as the sixth most rapidly growing economy in the Eurozone in 2015. By the end of the year Latvia is expected to reach a 2.6% economic growth. The forecasts for the next four years are also promising, according to the latest report issued by the Latvian Ministry of Economy.

Latvia, one of the most competitive economies in the Eurozone

Earlier this month Ernst & Young released its annual Eurozone Economic Forecast in which Latvia appeared to have the sixth fastest growth rate within the Eurozone. Latvia is expected to reach a 2.6% economic growth by the end of the year. The Latvian economy could get even stronger over the next four years, according to the same report which predicts a 3.8% increase in 2016 and 4.5% every year from 2017 to 2019. The overall Eurozone economy is also expected to improve by 1.4% by the end of the year.

Latvia currently enjoys low energy tariffs and a growing demand in exports from the United States and the United Kingdom. The researchers also believe the Latvian business community is very confident about the country’s growing economic stability over the next few years. Also, Latvia together with other Eurozone countries are among the best countries listed in World Bank’s Ease of Doing Business report. The Government plans to improve business conditions even more in Latvia.

What has led to economic growth in Latvia?

The Gross Domestic Product has increased by 17.4% from 2010 to 2014 which was the fastest growth among all EU member states. In 2015, one of the main reasons leading to economic growth in Latvia was the household consumption because of the low oil prices. Household consumption is expected to increase even more this and the next year. Latvia also benefited from a lower euro exchange rate which has increased its exports. Nevertheless, the situation will not change even if the euro exchange rate stabilizes. Another major player leading to economic growth was investment.

The Government wants to get closer to the level of other European countries by attracting more foreign investments, reforming the education system and increasing the exports rate. For complete information about investment opportunities in the country you can contact our lawyers in Latvia.