Latvia's Economic Response to Covid-19
Estonia
EU-28: 1.6%
0.7
Sweden
Luxembourg
Norway
Bulgaria
Czechia
Denmark
Latvia
Germany
Netherlands
Source: Eurostat
29
Lithuania
Finland
Romania
Slovakia
Ireland
•
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
General government debt will increase, but remain below 60% in medium term
Despite the projected debt increase in the medium term because of Covid-19 support measures it is expected to be in line
with Maastricht criteria
Key Characteristics of Latvia's Government Debt
General Government Debt Year End
(EUR million, % GDP, ESA methodology)
Interest payments 2019, % GDP
General government debt was amongst the lowest in the EU at 36.9 % of
GDP at the end of 2019. It is the 4th lowest in the Eurozone and the 9th lowest
in the EU
50.8%
50.6%
49.1%
43.7%
40.4%
39.0%
37.1% 36.9%
Malta
Austria
France
Poland
Slovenia
Belgium
Croatia
United Kingdom
Spain
Hungary
Cyprus
Greece
Portugal
Italy
8.4
15 658
16 597
16 941
12 906
10 245
10 519
10 816
11 247
2017
2016
2018
2019
2020 F
2023 F
Source: Eurostat (actual data 2016-2019), current estimation for 2020, indicative estimation for 2021-
2023, subject to Covid-19 fiscal impact and government decisions about Covid-19 mitigation and support
measures
2021 F
2022 F
General Government Debt
(Eurozone countries 2019, % GDP)
Estonia
Lithuania
Luxembourg
Latvia
36.9
Malta
Slovakia
Netherlands
Ireland
Source: Eurostat (October 2020)
Finland
Germany
Slovenia
Austria
Euro area
United Kingdom
84.0
Cyprus
Spain
Belgium
France
Portugal
Italy
Greece
134.7
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