Latvian economy likely to grow by 2 to 3 percent in 2017

The Latvian economy is likely to grow by 2 to 3 percent in 2017, which is below its true potential because of insufficient investment inflow, Latvia's former finance minister Andris Vilks said on Monday.

Vilks, now the European Investment Bank's (EIB) director for the European Bank for Reconstruction and Development, made the remarks on a Latvian public radio.

In 2016, Latvia's growth was weaker than expected, which can be put down to both external and domestic circumstances, Vilks said.

The absorption of EU funding, for instance, stalled last year. Furthermore, consumers and entrepreneurs became increasingly cautious amid not very encouraging signals about development in Europe, he said.

Vilks also named problems with investors' protection and labor shortages in sectors as factors holding back Latvia's growth. Endit