Republic of Latvia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia

September 5, 2018

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Republic of Latvia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia, (USA: International Monetary Fund, 2018) accessed September 18, 2024

Summary

This 2018 Article IV Consultation highlights that Latvia’s government revenues overperformed in 2017, buoyed by strong economic activity and wage growth. Nonetheless, the 2017 general government structural balance recorded a deficit of 0.8 percent of GDP, which resulted in a positive fiscal impulse rendering fiscal policy procyclical. Despite the suspension of activities of Latvia’s third largest bank on money laundering concerns, the banking system remains well capitalized and liquid, with capital-to-risk-weighted assets of 22.4 percent and liquid assets exceeding 80 percent of short-term liabilities at end-March 2018. Deleveraging of both households and nonfinancial corporations continued, with household debt to income now at half of its pre-crisis levels.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, External debt, Fiscal policy, Labor, Labor markets, Public debt, Wages

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Authorities' effort, Authority, Cost competitiveness, CR, Debt, EU funds inflow, GDP, Global, IMF staff calculation, Income convergence process, ISCR, Labor force, Labor markets, Latvia, Provision, Support labor market participation, Wages, World Bank-International Monetary Fund mission

Publication Details

Pages:

65
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/266
Stock No:

1LVAEA2018001
ISBN:

9781484375242
ISSN:

1934-7685

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