IMF Staff Country Reports

Republic of Latvia: 2010 Article IV Consultation Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Latvia : Republic of Latvia: 2010 Article IV Consultation Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Latvia

Author/Editor:

International Monetary Fund

Publication Date:

December 9, 2010

Electronic Access:

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Summary:

Policy efforts in Latvia have supported stabilization. Immediate risks are much lower, but medium-term challenges remain. The government should focus on durable spending cuts, but revenue measures may also be required. Efforts to strengthen regulation and supervision to improve financial stability, including reducing reliance on wholesale external funding, is commended. With monetary and fiscal policy constrained by the fixed exchange rate and the need to reduce the deficit, growth depends on structural reform. While economic and financial conditions are much improved, risks remain significant.

Series:

Country Report No. 10/356

Subject:

Article IV consultation reports Bank supervision Currency boards Economic indicators External sector Fiscal consolidation Fiscal reforms Performance criteria waivers Phasing of purchases Real effective exchange rates Stabilization measures Stand-by arrangement reviews

Frequency:

Quarterly