In Latvia, the average remuneration has risen by 8.3% YoY, but this rate is insufficient to offset the price surge (+16.4%). Free-market allocation is much needed.
Energy independence, the fight against the shadow economy, digitization, stability and rule-of-law are essential for Latvia’s competitiveness and FDI attraction.
Latvia ranks 5th among EU members in VHCN. Last year important investment has been made in fibre optic communication innovation.
In Latvia, the State programme for house purchase provides a boost to the price increase, lowering the effectiveness of the macroprudential policy.
In Latvia, inflation was on the rise in June (+19.3% YoY). Businesses transferred the cost increase to the prices and made consumers pay for it.
As the price of almost all goods and services continued to increase, the scenario in Latvia is worsened by the transport sector.
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
The Latvian economy already returned to its pre-pandemic level in 2021, only thanks to household consumption, wage growth and savings.
Riga is facing multiple challenges: energy prices, increasingly unemployed, a domestic market fall, global supply chain disruptions.
GDP growth projections for 2021-22 have been revised downwards, hit by shortages of materials, equipment, labour and rising energy costs.