Latvia's Economic and Financial Outlook
Public Debt on Declining Trend
Latvia remains committed to keeping government debt at moderate levels.
•
Key Characteristics of Latvia's Government Debt
General government debt is amongst the lowest in the EU at 36 % of GDP at the
end of 2018. It is the 4th lowest in the Eurozone and the 8th lowest in the EU
Latvia enjoys one of the lowest debt servicing costs across the region,
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
Debt Servicing Costs
(%GDP)
General Government Debt Year End
(EUR million, % GDP, ESA methodology)
41%
39%
40%
40%
37%
37%
36%
36%
8 893
9 669
10 092
10 807
11 716
11 975
10 608
8 953
2013
2014
Source: Eurostat, The Treasury
2015
2016
2017
2018
2019F
2020F
General Government Debt
(2018, % GDP)
3.5
3.0
EU-28: 80%
2.5
2.0
1.5
102 %
98 %
74%
59 %
36%
33 %
1.0
0.5
8%
2011
2012 2013 2014 2015 2016 2017 2018F 2019F 2020F
Latvia
⚫Lithuania
⚫EU-28
Eurozone
Estonia
AA-/A1/AA-
Czech
AA-/A1/AA-
Latvia
A/A3/A-
Finland
Austria
France
Belgium
AA+/Aa1/AA+AA+/Aa1/AA+ AA/Aa2/AA AA/Aa3/AA-
Source: European Economic Forecast, Spring 2019, European Commission
Source: Eurostat
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