IMF Staff Country Reports

Latvia: Recent Economic Developments

Publication Date:

December 19, 1995

Summary:

This paper reviews economic developments in Latvia during 1993–94. During 1994, Latvia began to enjoy the fruits of its steadfast efforts to achieve macroeconomic stabilization and the transformation to a market economy. GDP grew by 2 percent, after three years of economic decline in which output is estimated to have fallen by about 50 percent. Real wages also increased in 1994, after sharp declines in earlier years. Although the unemployment rate increased to about 6½ percent of the labor force, it remained well below expectations and also below unemployment rates in Western Europe.

Series:

Country Report No. 1995/125

Subject:

Banking Budget planning and preparation Commercial banks Credit Expenditure Financial institutions Money Public financial management (PFM) Treasury bills and bonds

Notes:

This report on recent economic developments in Latvia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of Latvia, or the Executive Board of the IMF.