Finance Minister: this year promises to be good for Latvia’s economy

This year promises to be beneficial for Latvia’s national economy, said Finance Minister Dana Reizniece-Ozola in an interview to Rīta Panorāma programme of LTV.

«Generally speaking, this year will be good,» said the minister, adding that the country’s GDP growth in Q1 2018 turned out better than the ministry had expected. According to estimates, Latvia’s economic growth is expected to be around 4% this year. At the same time, Reizniece-Ozola added that developments in Latvia’s financial sector may add corrections to economic growth, but not major ones.

The minister mentioned that sorting out the country’s financial sector is no easy task, and this may create difficulties in the future. Nevertheless, it is expected to have a positive impact overall. «With our financial sector becoming more stable, ordered and transparent, we will be in a good position to restore relations with USA and attract new investments,» said Reizniece-Ozola.

She also admits that Latvia is currently in the middle of sorting its financial sector. «We are in the middle of this process. Because of that, we are nowhere close to have anything to be satisfied with,» said the minister, admitting that the process is going smooth. Nevertheless, there are more than 20 different measures left to realize.

She also adds that 2018 commenced with good tax revenue for the state budget. The minister also added that she is satisfied to see increased revenue from labour taxes. «It is important and shows continued decline of the grey economy and envelope wages,» said the minister, adding that the number of small wage recipients in Latvia has significantly declined (by 23%).

As previously reported, Latvia’s GDP has grown 4.3% in Q1 2018 when compared to the same period of 2017.

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