Portrait of an Ascending Sovereign Credit

Key Strengths Underpinning Latvia's Credit Profile 3 Flexible and resilient economy with strong and coordinated response to economic challenges Broadly-diversified exports, important factor underpinning healthy current account balance Impact from Covid-19 on Latvia's economy has been relatively moderate and the recovery is expected in 2022 Prudent fiscal management in previous years provided the fiscal space to absorb the Covid-19 negative impact on the economic Well-capitalized and liquid banking sector, with tighter AML/CFT regime

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