Uncertainty is rising
The macroeconomic forecasts are based on gross domestic product (GDP) data for the first quarter of 2026 and short-term macroeconomic indicators available as of early June. Given the sharp rise in oil and other energy prices following the escalation of the conflict in the Persian Gulf, disruptions in supply chains, and growing uncertainty, Latvia’s economic growth forecast for this year has been lowered by 0.6 percentage points to 2%, and for 2027 by 0.7 percentage p...