Year 2012 was very successful for the economy of Latvia, and economic growth is substantially better than was forecast at the beginning of last year. GDP in 2012 has increased by 5.6 per cent, prevailing the achieved 5.5 per cent in 2011.
"Stability of our economy towards the deterioration of external environment is explained both by the reforms implemented during the years of crisis and budget reduction, which allowed to regain trust of investors and strengthen the competitiveness of Latvia, and by gradual recovery of domestic demand. In addition, a substantial factor in the rapid growth is that the eurozone crisis has affected Latvia’s trade partner states less than the Southern European states, what has facilitated the development of our export. We are also pleased that Latvia’s economic growth has become more balanced and thus - more stable towards different turmoil. Such a positive economic development at the end of the last year allowed the Ministry of Finance to increase 2013 GDP growth forecasts up to 4.0 per cent, instead of the previous 3.7 per cent", emphasises Minister of Finance Andris Vilks.
One should also positively evaluate the development of events in Europe where the short-term risks related to the eurozone debt crisis have been reduced during the last months. Though the speed of economic growth remains negative in the eurozone, tension in financial markets has decreased. During the last months there are improvements observable in the confidentiality indices of the European countries, despite remaining at a low level.
In the fourth quarter of the last year in comparison with a respective period of the year 2011, GDP has increased by 5.1 per cent. As expected previously, Latvia had the most rapid economic growth within the European Union in the last year. It should be noted that during the last year economic growth in EU on the whole was negative and many EU Member States have gone into recession. Therefore, such rapid GDP growth in Latvia is definitely considered as an excellent achievement.
Full press release
© Ministry of Finance of the Republic of Latvia
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