Latvian Finance Minister Sees Budget Gap Close to 1%, Ir Says

Latvia’s budget deficit this year will be closer to 1 percent of economic output rather than 2 percent should gross domestic product increase by at least 3 percent in the second half of the year, Finance Minister Andris Vilks said in an interview published today in the magazine Ir.

The Baltic nation’s economy expanded 6.9 percent in the first quarter from the same period a year ago. The government originally targeted a shortfall of 2.5 percent of GDP this year. Prime Minister Valdis Dombrovskis was quoted by the BNS news service on May 15 as saying the gap will be 2.1 percent.

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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