Regulatory Alerts2026-06-16
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Macroeconomic Projections | June 2026
Latvijas Banka updated its June 2026 macroeconomic projections, revising inflation forecasts upward to 3.6% for 2026, 3.8% for 2027, and 3.4% for 2028 due to higher global energy prices and geopolitical tensions. GDP growth projections were lowered to 2.0% for 2026, 2.4% for 2027, and 3.0% for 2028, reflecting weakened external demand and increased caution among consumers and investors. The central bank also noted that the budget deficit is expected to approach 5% of GDP in the coming years, driven by sustained high defense spending and military equipment deliveries.
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