Latvia Stability Programme Report

EU-27: 1.4% 0.5 9 Estonia 0.0 Luxembourg 30 Source: Eurostat (April 2022) Sweden Lithuania Bulgaria Denmark Latvia Finland Finland Germany Netherlands Czechia Ireland Austria Poland Malta Slovenia Slovakia France Romania Croatia Belgium Cyprus GENERAL GOVERNMENT DEBT REMAINS MODERATE AND SUSTAINABLE Despite the recent increase due to fiscal impact of Covid-19 pandemic, the debt level is expected to be below 60% of GDP in the medium term Key Characteristics of Latvia's Government Debt General government debt was amongst the lowest in the EU at 44,8% of GDP at the end of 2021 - the 4th lowest in the Eurozone and the 8th lowest in the EU General government debt level increased due to fiscal impact of Covid-19 pandemic, but expected to be well below 60% of GDP in the medium term Latvia enjoys low debt servicing costs, significantly lower than the EU and Eurozone averages Since March 2014 Latvia participates in the European Stability Mechanism, which provides additional financial stability to its members General Government Debt at Year End (EUR million, % GDP, ESA methodology) 45% 46% 45% 44% 43% 43% 40% 39% 37% 37% 16 679 17 646 18 420 18 999 14 740 12 754 10 245 10 519 10 816 11 247 T T 2016 2017 2018 2019 2020 2021 2022 F 2023 F 2024 F 2025 F 3.5 Interest payments 2021, % GDP Source: Eurostat (actual data 2016-2021), forecast 2022-2024 (Stability Programme of Latvia 2022-2025) General Government Debt 2021, % GDP (Euro zone countries) Spain Hungary Portugal Greece Italy Estonia Luxembourg Lithuania Latvia Source: Eurostat (April 2022) Netherlands Eurozone Average: 95,6% 44.8 Ireland Malta Slovakia Finland Germany Slovenia Austria Cyprus Belgium France Spain Portugal Italy Greece

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