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-6.5%

Latvijas Banka has revised downwards its forecast of Latvia's GDP growth for 2020 to -6.5%.

Agnese Rutkovska

Economist, Latvijas Banka

Deceleration of external demand and domestic development has resulted in sluggish growth of gross domestic product: without much vigour, Latvia's economy still managed to keep the head above water in the last quarter of 2019.

Oļegs Krasnopjorovs

Economist, Latvijas Banka

Andrejs Bessonovs

Economist, Latvijas Banka

According to our research, a 10% increase in global oil prices raises the level of consumer prices in Latvia by 0.6% in the medium term.

Kristofers Pone

Economist, Latvijas Banka

Overall, foreign direct investment reached 198 million euro (2.5% of GDP) in Latvia in the fourth quarter. The largest inflows were registered from Sweden, Estonia, and Czechia in sectors like real estate activities, energy, information and communication technologies, as well as the financial sector.

Miķelis Zondaks

Economist, Latvijas Banka

Latvia's labour market indicators for 2019 reflect both slower economic growth and contractions in the number of working age population.

Daina Pelēce

Economist, Latvijas Banka

Latvia's exports of goods continue to benefit from global economic growth.

Annual inflation (%; HICP)

2019 II	2.8
2019 III	2.7
2019 IV	3.3
2019 V	3.5
2019 VI	3.1
2019 VII	3
2019 VIII	3.1
2019 IX	2.3
2019 X	2.2
2019 XI	2
2019 XII	2.1
2020 I	2.2
2020 II	2.3

Foreign direct investment in Latvia (net flows, EUR millions)

Job seekers rate (%)

Exports (year-on-year; %)

2019 I	1.1
2019 II	-1.4
2019 III	9.7
2019 IV	3.6
2019 V	-1.9
2019 VI	-8.3
2019 VII	3.2
2019 VIII	-1.6
2019 IX	4.8
2019 X	-0.6
2019 XI	-6.8
2019 XII	2.8
2020 I	7.2

All

Macroeconomic Indicators

2018 Q4	5.3
2019 Q1	3.3
2019 Q2	2.7
2019 Q3	1.8
2019 Q4	1

2018 Q4	380
2019 Q1	132
2019 Q2	-62
2019 Q3	397
2019 Q4	198

2018 Q4	6.9
2019 Q1	6.9
2019 Q2	6.4
2019 Q3	6
2019 Q4	6

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EXPERT'S COMMENT

Agnese Rutkovska

Oļegs Krasnopjorovs

Andrejs Bessonovs

Kristofers Pone

Miķelis Zondaks

Daina Pelēce

Real GDP (year-on-year; %)

Annual inflation (%; HICP)

Foreign direct investment in Latvia (net flows, EUR millions)

Job seekers rate (%)

Exports (year-on-year; %)

MACRO DEVELOPMENTS REPORT

NUMBER THAT COUNTS