Economic growth is strong and income convergence continues, even though at a slower pace than before 2008. The labour market is tight, as unemployment fell to its lowest rate in ten years and vacancies are rising fast. Wage growth has been strong supporting household purchasing power. Despite increasing labour costs, Latvian exporters have remained competitive and gained market shares. The macroeconomy appears balanced overall with inflation, public debt and the deficit under control. Financial markets look stable, sustained by sound macroprudential policy.
Going for Growth builds on OECD expertise on structural policy reforms and economic performance to provide policy makers with a set of concrete recommendations on reform areas identified as priorities for strong and inclusive growth. The priorities broadly cover product and labour market regulation, education and training, tax and transfer systems, trade and investment rules, as well as innovation policies. The Going for Growth framework has been instrumental in helping G20 countries make progress on their structural reform agenda, including through monitoring their growth strategies to achieve sustained and balanced growth.