Latvia Economic and Fiscal Outlook

3 OVERVIEW: Portrait of the sovereign credit .4 ENERGY AND SECURITY: Energy independence and NATO membership..... .......8 FISCAL POLICY: Moderate deficit and fiscal buffers... .12 THE ECONOMY: Flexible and Resilient Economy .17 BANKING SECTOR: Well-Capitalized and Liquid .25 GOVERNMENT DEBT MANAGEMENT: Flexibility in funding strategy .30 CONCLUSION .35

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