Latvia Economic and Fiscal Outlook
31 Source: Eurostat
Estonia
Luxembourg
Lithuania
Latvia
Eurozone average: 95.6%
44.8
Netherlands
Ireland
Malta
Slovakia
Finland
Germany
Slovenia
Source: Eurostat (April 2022)
Million, EUR
400
350
300
250
200
150
100
50
Latvia enjoys low debt servicing costs
M
0
2012
2013 2014
2015 2016 2017 2018
2019 2020 2021
Interest, payments, million EUR
Interest, payments, % of GDP
Austria
Cyprus
GENERAL GOVERNMENT DEBT REMAINS LOW
Despite additional funding needs during Covid-19 pandemic and current support measures during the energy price peak
period, the debt level is expected to stay well below 60% of GDP in the medium term
4th lowest General Government Debt Level in the Eurozone
General Government Debt 2021, % GDP
(Eurozone countries)
Low debt level provides effective buffer for scenarios of
additional funding needs
General Government Debt % GDP
1
0.8
0.6
0.5
0.4
0.2
0
1.4
1.2
% of GDP
Belgium
1.8
1.6
France
Spain
Portugal
Italy
Greece
Stability and Growth Pact: 60%
44.8%
43.3%
42.0% 43.0% 42.4% 41.5%
40.4%
39.0%
37.1% 36.7%
2016
2018
2019
2020
2021
2022 F 2023 F 2024 F 2025 F
2017
Source: Eurostat (April 2022), the Treasury forecast on 28.09.2022.
Low debt level is one of the strength of Latvia credit rating
A quote from Fitch Ratings 5th August, 2022 report:
«Latvia's ratings are supported by a credible policy
framework supported by EU and eurozone membership,
as well as government debt levels and debt servicing
costs below the median of 'A' rated peers.>>View entire presentation