Finance Ministry Lowers GDP Growth Forecast and Predicts Higher Inflation
The Ministry of Finance has updated its medium-term macroeconomic forecasts, indicating slower economic growth and higher inflation compared to February projections.
The Latvian Ministry of Finance has updated its indicative medium-term forecasts for macroeconomic and fiscal indicators, taking into account the latest trends in the economy and the geopolitical situation. The new forecasts point to slower economic growth and higher inflation than was projected in February of this year. At the same time, the potential volume of fiscal space for subsequent years has also been outlined.
The ministry specified that the updated forecasts reflect the current situation and help in planning the state budget. Detailed figures for specific GDP and inflation rates are not disclosed, but it is emphasized that the pace of economic growth will be lower and price increases will be higher than previous estimates.
