Fiscal Balance in Latvia
Latvia - Fiscal Balance
Latvia reduces fiscal deficit ahead of EU-IMF schedule
On 8 June, the European Commission (EC) and the International Monetary Fund (IMF) approved the next loan program agreement with Latvia. This was part of the bailout the country secured two years ago, which allows the country to borrow up to EUR 100 million (USD 146 million). However, owing to the better-than-expected financial and fiscal position, the government decided not to borrow the agreed amount. In fact, in the fourth review under the Stand-by Arrangement, the IMF praised the government's strong spending discipline, which reduced the fiscal deficit to 7.7% of GDP in 2010, well below the 8.5% of GDP target. In addition, authorities anticipate that, on the back of the strong austerity measures adopted by the government in its December budget, this year's fiscal deficit will shrink below 4.5% of GDP. The unused funds are to be transferred to the next tranche, which will be released before the assistance expires on 19 January of 2012. Meanwhile, on 6 June, credit agency Moody's upgraded Latvia's credit outlook from stable to positive, citing the country's ongoing recovery, the consolidation of its public finances, as well as its progress towards meeting the criteria necessary in order to join the euro area.
Latvia - Fiscal Balance Data
|Fiscal Balance (% of GDP)||-1.2||-1.4||-1.4||0.1||-0.6|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.10||0.65 %||Sep 04|
|Stock Market||1,025||0.17 %||Sep 04|
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September 3, 2019
Industrial production fell 1.3% in annual working-day adjusted terms in July, contrasting June’s robust 4.4% increase.
August 12, 2019
Consumer prices fell 1.0% in July from the previous month in July, contrasting June’s 0.4% increase and marking the strongest monthly contraction since July 2015.
August 5, 2019
Industrial production rose 4.4% in annual working-day adjusted terms in June, up from a 1.7% year-on-year increase in May.
July 30, 2019
GDP increased 2.0% on annual basis in the second quarter, according to a second estimate released on 30 August.
July 15, 2019
Consumer prices rose 0.4% from the previous month in June, up from May’s 0.2% increase.