{
  "title": "Republic of Latvia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia",
  "publication": "IMF Staff Country Reports, September 5, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2018/09/05/republic-of-latvia-2018-article-iv-consultation-press-release-staff-report-and-statement-by-46206",
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  "summary": "This 2018 Article IV Consultation highlights that Latvia’s government revenues overperformed in 2017, buoyed by strong economic activity and wage growth. Nonetheless, the 2017 general government structural balance recorded a deficit of 0.",
  "sections": [
    {
      "heading": "Fiscal outcomes and policy stance",
      "content": "- Government revenues overperformed in 2017, buoyed by strong economic activity and wage growth.\n- The 2017 general government structural balance recorded a deficit of 0.8 percent of GDP.\n- The deficit resulted in a positive fiscal impulse, rendering fiscal policy procyclical."
    },
    {
      "heading": "Banking system resilience and AML/CFT development",
      "content": "- Despite the suspension of activities of Latvia’s third largest bank on money laundering concerns, the banking system remains well capitalized and liquid.\n- Capital-to-risk-weighted assets of 22.4 percent (end-March 2018).\n- Liquid assets exceeding 80 percent of short-term liabilities (end-March 2018).\n- Subject focus includes Anti-money laundering and combating the financing of terrorism (AML/CFT) and authorities' effort."
    },
    {
      "heading": "Debt dynamics and balance-sheet repair",
      "content": "- Deleveraging of both households and nonfinancial corporations continued.\n- Household debt to income now at half of its pre-crisis levels."
    },
    {
      "heading": "Key statistics (as reported)",
      "content": "- 2017 general government structural balance: deficit of 0.8 percent of GDP.\n- Capital-to-risk-weighted assets: 22.4 percent.\n- Liquid assets: exceeding 80 percent of short-term liabilities at end-March 2018.\n- Household debt to income: now at half of its pre-crisis levels.\n\nRepublic of Latvia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia, IMF Staff Country Report No. 2018/266 (September 5, 2018).\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: September 5, 2018",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484375242.002",
    "Government revenues overperformed in 2017, buoyed by strong economic activity and wage growth.",
    "The 2017 general government structural balance recorded a deficit of 0.8 percent of GDP.",
    "The deficit resulted in a positive fiscal impulse, rendering fiscal policy procyclical.",
    "Despite the suspension of activities of Latvia’s third largest bank on money laundering concerns, the banking system remains well capitalized and liquid.",
    "Capital-to-risk-weighted assets of 22.4 percent (end-March 2018).",
    "Liquid assets exceeding 80 percent of short-term liabilities (end-March 2018).",
    "Subject focus includes Anti-money laundering and combating the financing of terrorism (AML/CFT) and authorities' effort.",
    "Deleveraging of both households and nonfinancial corporations continued.",
    "Household debt to income now at half of its pre-crisis levels.",
    "2017 general government structural balance: deficit of 0.8 percent of GDP.",
    "Capital-to-risk-weighted assets: 22.4 percent.",
    "Liquid assets: exceeding 80 percent of short-term liabilities at end-March 2018.",
    "Household debt to income: now at half of its pre-crisis levels.",
    "**Country Report**"
  ],
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