RIGA, Dec. 13 (Xinhua) -- The Bank of Latvia on Friday revised the Baltic country's GDP growth forecast for 2024 down to 0.1 percent from previously projected 0.6 percent.
According to the bank's latest macroeconomic forecasts, the downward revision is primarily attributed to past weak performance, while the future outlook remains largely unchanged.
The central bank also projects stronger growth in 2025 supported by private consumption, export and investment, but noted that the projections could develop under the ongoing uncertainty in the German political landscape, the potential imposition of high import tariffs by U.S. President-elect Donald Trump, and instabilities in Europe's neighboring regions.
"Although consumer sentiment and financial well-being are improving, private consumption is still weak as households are opting to replenish their savings depleted by inflation," the bank said.
Meanwhile, the labor market is expected to remain resilient, supported by improved employment outlooks, a gradual recovery in the external environment, and sustained economic growth.
Latvia's GDP growth forecast for 2025 has also been revised down to 2.1 percent from 2.6 percent, but the forecast for 2026 remains at 3 percent. ■