The Latvian economy is predicted to grow at 2.4% this year according to the European Commission. 

The report published on Thursday, predicted the country’s economic growth would accelerate to 3% next year and to 3.3% in 2017.

Latvian exports have been strong during the year, with the country successfully finding new markets to fill the void of the Russian sanctions imposed last year. The depreciation of the euro has made this task a lot easier for exporters.

Other positives include a recovery in bank lending and investment growth, particularly from the European Union.

Risks to the economy include rising salaries making the country less competitive, and the tourism sector still remains quite volatile. Wage growth and an increase in energy prices are likely to push inflation over 2% by 2017.

Whilst unemployment according to the EC is likely to fall from 10.8% last year, to 8.8% in 2017, the demographic crisis remains a problem. Latvia struggles with an ageing population and large scale emigration.