Latvian MinFin lowers GDP growth forecast to 2.9% in 2014, 2.8% in 2015
MOSCOW. Sept 4 (Interfax/BNS) - Latvia's Finance Ministry has lowered its growth forecast for GDP to 2.9% in 2014 and 2.8% in 2015, the head of the Finance Ministry's Communication Unit, Aleksis Jarockis, told BNS.
The ministry has also forecast that Latvian GDP will grow 3.3% in 2016 and 3.6% in 2017.
The Finance Ministry had previously projected the country's GDP to grow 4% in 2014 and 2015.
In addition, the ministry is forecasting inflation of 0.8% this year, 2.4% in 2015 and 2.5% in 2016 and 2017. These figures were previously projected at 1.1% in 2014 and then 3% in 2015.
The Finance Ministry changed its forecast to factor in the current geopolitical situation, as well as the latest data on how the country's economy was performing. The state budget is developed based on the new forecasts. The government is planning to review the budget on October 14, and by October 15 Latvia must present the budget to the European Commission and the Eurogroup.
"Latvia will be submitting a draft of the budget, which includes main figures that will determine the government's fiscal policy, for the first time as a member of the euro zone. The altered forecasts have been agreed upon by experts from the European Commission and the IMF," Jarockis said, adding that macroeconomic performance forecasts may be adjusted if the geopolitical situation changes.