## Republic of Latvia: 2012 Article IV Consultation and Second Post-Program Monitoring Discussions

_IMF Staff Country Reports, January 28, 2013_

## Source details

**Canonical URL:** [Republic of Latvia: 2012 Article IV Consultation and Second Post-Program Monitoring Discussions](https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-latvia-2012-article-iv-consultation-and-second-post-program-monitoring-40274)

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## Bibliographic details
- Published: January 28, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475519839.002

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### 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).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-latvia-2012-article-iv-consultation-and-second-post-program-monitoring-40274_