The Latvian economy could grow 3.8% in 2014, which would be the fastest
growth among all eurozone countries, the International Monetary Fund said in an
upgraded forecast yesterday, cites LETA/AFP. The Estonian economy will grow
2.4%
Next year, Latvia’s economy could increase 4.4%. The data on Latvia, however, are not included in the overall eurozone forecast yet.
According to the IMF forecast, the eurozone economy is recovering towards 1.2% growth this year. Warning that recovery in the 18 eurozone members was struggling up a slippery slope, the IMF raised the outlook for this year from 1%, and forecast 1.5% growth next year and in the medium term.
Although the eurozone had “finally emerged from recession” after a contraction of 0.5% last year, “downside risks dominate”, the IMF said.
The legacy of the financial and debt crises in the form of high unemployment, debt and tight credit still had to be tackled, but the recovery is underpinned by reforms already enacted, it added.
However dangers abound, notably a “relatively high risk” of deflation, which could set the recovery back, the IMF said.
Read the whole story here: http://www.baltic-course.com/eng/analytics/?doc=90196
Source: The Baltic Course