IMF Staff Country Reports

Republic of Latvia: Staff Report for the 2005 Article IV Consultation

Publication Date:

August 10, 2005

Electronic Access:

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Summary:

The staff report for the 2005 Article IV Consultation on the Republic of Latvia highlights the economic outlook and mid-term risks. A sound policy framework and far-reaching structural reforms supported this performance, including a prudent fiscal policy that underpinned the exchange rate peg. The ongoing credit boom and faster real wage growth are expected to support private domestic demand while a sharp increase in net European Union (EU) grants would also boost public spending. Efficiently allocating EU funds for infrastructure was seen as a key element of a framework for promoting efficient resource allocation.

Series:

Country Report No. 2005/282

Subject:

Balance of payments Banking Credit Current account deficits External debt Fiscal policy Inflation Money Prices