Latvia’s GDP growth will fall from 2.1% in 2025 to 1.9% in 2026, before rising to 2.2% in 2027, the Organisation for Economic Co-operation and Development (OECD) forecasts, LSM reports. Average annual inflation will decline from 3.8% in 2025 to 3.6% in 2026 and 3.2% in 2027, the OECD projects in its latest survey of the Latvian economy. The report notes that Latvia’s fiscal deficit has widened. The OECD urges Latvia to reprioritise public spending and optimise tax revenues, including by broadening the tax base more towards property and environmental taxes. Also, the report recommends improving the capacity of public administration, raising public spending on health care, and accelerating the green transition.
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