Republic of Latvia: 2019 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, August 7, 2019
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- Republic of Latvia: 2019 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: August 7, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513509983.002
Economic performance and outlook
- Economy continued to expand rapidly in 2018, with growth surprising through a strong construction-driven upswing.
- Growth outlook is favourable, but risks weigh on the downside due to a less supportive external environment.
- Fiscal and current account deficits are at manageable levels.
- Public debt is at a manageable level.
Financial system stability and banking sector
- Financial system remains stable despite a significant balance sheet restructuring of banks servicing foreign clients.
- Banks remain well capitalized and liquid:
- Capital levels about 40 percent higher than the euro area average.
- Average liquidity coverage four times the regulatory minimum.
Structural challenges and policy priorities
- Higher productivity and investment growth are needed to:
- Offset the impact of Latvia’s exceptionally unfavorable demographic trends.
- Achieve robust long-term growth and rapid income convergence.
Key statistics and publication metadata
- Pages: 73
- Volume: 2019
- Issue: 264
- Series: Country Report No. 2019/264
- DOI: https://doi.org/10.5089/9781513509983.002
- Stock No: 1LVAEA2019001
- ISBN: 9781513509983
- ISSN: 1934-7685
International Monetary Fund. Republic of Latvia: 2019 Article IV Consultation-Press Release; and Staff Report.
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