Republic of Latvia: 2012 Article IV Consultation and Second Post-Program Monitoring Discussions
IMF Staff Country Reports, January 28, 2013
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- Republic of Latvia: 2012 Article IV Consultation and Second Post-Program Monitoring Discussions
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Bibliographic details
- Published: January 28, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475519839.002
Summary findings
- Latvia has rebounded from the crisis after successfully undertaking a difficult adjustment program.
- The recovery has been well balanced between external and domestic demand.
- The labor market is improving but unemployment is still high.
- Past consolidation efforts have brought down the fiscal deficit.
- The banking system is recovering.
- Nonresident deposits in the banking system have been expanding rapidly.
- Economic growth is expected to weaken slightly in 2013, before picking up later.
- Euro adoption in 2014 appears within reach, subject to some technical uncertainties.
Macroeconomic and fiscal stance
- Fiscal consolidation in prior years reduced the fiscal deficit.
- Economic growth: expected to weaken slightly in 2013, with a pickup thereafter.
- Euro adoption: projected for 2014 conditional on resolving technical uncertainties.
Financial sector and external developments
- Banking system: recovering following the crisis.
- Nonresident deposits: expanding rapidly in the banking system.
- External vs. domestic demand: recovery balanced between both components.
Labor market
- Labor market conditions: improving.
- Unemployment: remains high (no numeric value provided in source).
Subjects and keywords
- Subject: Banking, Credit, External debt, Financial institutions, Fiscal policy, Fiscal stance, Loans, Money, Public debt
- Keywords: CR, Credit, Fiscal stance, Global, ISCR, Latvian authorities, Loans, Maastricht deficit criterion, obligation, SBA program, staff appraisal, staff representative, statement
International Monetary Fund. Republic of Latvia: 2012 Article IV Consultation and Second Post-Program Monitoring Discussions (IMF Staff Country Reports 2013, 028).