Latvia's Economic and Financial Outlook

3 Key Strengths Underpinning Latvia's Credit Profile 1 Flexible, resilient economy, among fastest growing in the Eurozone 2 Broadly-diversified exports, important factor underpinning healthy current account balance 3 Fiscal discipline, deeply embedded, reflected in low, and still declining, government debt 4 New era of reforms launched in 2017, focused on building a new economic model, based on improving productivity and more inclusive growth 5 Well-capitalized and profitable banking sector, supporting moderate expansion of credit, with tighter AML/anti-terrorism funding regime

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