OREANDA-NEWS. On April 11, 2008 the Finance Ministry and the Economy Ministry predicted that Latvia's gross domestic product (GDP) growth will be 5,5 percent this year. They also predict that the GDP will increase as much in 2009, LETA was informed by the Finance Ministry's Communications Department.

Finance Minister Atis Slakteris (People's Party) pointed out that, taking into account recent events and conclusions made by experts, this prediction could be reconsidered in the near future, however, it is most likely that it will stay within the 5 percent area.

As reported, the International Monetary Fund (IMF) said in its latest report on global economic development that Latvia's GDP could increase 3,6 percent this year, which would be a much smaller growth than last year when Latvia's GDP increased 10,2 percent.

In 2009, Latvia's GDP growth is projected to fall to 0,45 percent, and to 0,28 percent in 2010, IMF said.

IMF also believes that inflation will remain high in Latvia. Average annual inflation in Latvia this year could be 15,3 percent, compared to 10,1 percent last year. In 2009, inflation in Latvia could decrease to 9,2 percent, and to 6,7 percent in 2010.

Latvia's current account deficit, 22,8 percent of GDP in 2007, could decrease to 15 percent of GDP this year, IMF said in the report.