Macroeconomic Forecast Macroeconomic Forecasts - Latvia

Flash data suggest the current account deficit was about 23.3% of GDP in 2007. Merchandise exports grew by almost 22% in 2007, while imports increased by 21% but decelerated in H207, reflecting the turning point of the economic cycle and base effects from earlier lumpy expenditures associated with shipping and energy sector projects. The services surplus increased in 2007 but the gain was more than offset by a deterioration in the income deficit and a decrease in the current transfers surplus. We expect the current account deficit to fall to 19.5% of GDP in 2008 and 15.9% in 2009 as investment spending slows and savings increase in both the public and private sectors.

To read the full article, please choose one of the following options: