Latvia has been exhibiting the fastest growing economy among the Baltic countries over the last five years, according to the latest statistics of the third quarter of 2017 by the Central Statistical Bureau of Latvia. The most recent data from the third quarter show that Latvia’s GDP has grown by 5.8%, which is the highest increase over the last five years in the Baltics.
An important factor in the economy growth stimulus was the increase in investments. In the third quarter of this year, gross fixed capital formation was 1/5 higher than a year ago. Investments in housing, buildings and construction increased by 25%, while in machinery and equipment – by 13%. Additionally, investment in intellectual property products (research, computer software, databases, copyright, etc.) has increased by 17%. Investment dynamics continue to be positively affected by both growing external and internal demand, the expansion of the availability of EU structural funds investment as well as the increase in credit limits. With continued favorable environment for investments and high capacity, a relatively rapid investment dynamics can be expected in the future.