Economic growth vs sustainable development – the case of Latvia

Abstract

Latvia has experienced an extremely high economic growth of late years. The same time the present macroeconomic situation in Latvia has been evaluated as the worst in the European Union. Economic growth, which is measured by the increase of GDP, shows the increase of economic activities, and is in correlation with the welfare. Latvia can be considered as an example where there is a rather high discrepancy between the level of economic activities and the welfare of people – high growth with low development. Development is a broader process than economic growth, as well as welfare can not be measured only in monetary terms. The analysis of economic processes in Latvia shows, that the rapid economic growth in Latvia has caused serious problems from the point of view of sustainable development.