{
  "title": "Republic of Latvia: Selected Issues",
  "publication": "IMF Staff Country Reports, August 7, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567",
  "overlayPath": "/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/index.md",
  "summary": "This Selected Issues paper analyses the implications of global value chains (GVC) participation for Latvia’s competitiveness and exposure to risks.",
  "sections": [
    {
      "heading": "Analytical focus",
      "content": "- Analyses the implications of global value chains (GVC) participation for Latvia’s competitiveness and exposure to risks.\n- Uses a structural model to:\n  - Assess Latvia’s competitiveness through different real effective exchange rate (REER) measures.\n  - Examine main factors behind differences in the REER measures."
    },
    {
      "heading": "Key findings",
      "content": "- The paper estimates the impact of an appreciation of the GVC related REER measure on:\n  - value added export growth — finding sizable effects.\n  - real GDP growth — finding sizable effects.\n- A rapid labor market tightening could lead to:\n  - erosion in competitiveness.\n  - reduction in growth.\n- Trade tension induced tariff hikes:\n  - may have significant cost for Latvia, especially in terms of value added produced in the country.\n  - are likely to have moderate costs for Latvia in terms of value added produced in the country. (This phrasing and assessment appear in the source text.)"
    },
    {
      "heading": "Policy recommendations and mitigation options",
      "content": "- Strengthen competitiveness based on the REER and structural-model analysis.\n- Policies aimed at:\n  - enhancing product sophistication or quality.\n  - export market diversification.\n  - These measures could mitigate Latvia’s exposure to trade shocks in GVCs."
    },
    {
      "heading": "Subjects and keywords (as stated in source)",
      "content": "- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Crime, Currencies, Foreign exchange, Money, Production, Productivity, Real effective exchange rates, Total factor productivity\n- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Asia and Pacific, Baltics, CR, Currencies, Europe, firm, firm gain, Global, GVC participation, ISCR, micro firm, Productivity, Real effective exchange rates, REER index, Total factor productivity, VA REER appreciation, value-added REER, Western Europe, zombie firm\n\nRepublic of Latvia: Selected Issues, IMF Staff Country Reports 2019, 265.\n\n---\n\n Content in this bundle\n\n- Republic of Latvia: Selected Issues; IMF Country Report No. 19/265 July 23, 2019\n  - Republic of Latvia: Selected Issues; IMF Country Report No. 19/265 July 23, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Republic of Latvia: Selected Issues; IMF Country Report No. 19/265 July 23, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/bundle-manifest.json)",
    "Published: August 7, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513510057.002",
    "Analyses the implications of global value chains (GVC) participation for Latvia’s competitiveness and exposure to risks.",
    "Uses a structural model to:",
    "The paper estimates the impact of an appreciation of the GVC related REER measure on:",
    "A rapid labor market tightening could lead to:",
    "Trade tension induced tariff hikes:",
    "Strengthen competitiveness based on the REER and structural-model analysis.",
    "Policies aimed at:",
    "Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Crime, Currencies, Foreign exchange, Money, Production, Productivity, Real effective exchange rates, Total factor productivity",
    "Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Asia and Pacific, Baltics, CR, Currencies, Europe, firm, firm gain, Global, GVC participation, ISCR, micro firm, Productivity, Real effective exchange rates, REER index, Total factor productivity, VA REER appreciation, value-added REER, Western Europe, zombie firm",
    "**Republic of Latvia: Selected Issues; IMF Country Report No. 19/265 July 23, 2019**"
  ],
  "related": [
    {
      "title": "Republic of Latvia: Selected Issues; IMF Country Report No. 19/265 July 23, 2019",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2019/1lvaea2019002.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2019/1lvaea2019002.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2019/1lvaea2019002.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/index.md",
    "json": "/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/index.json",
    "bundleManifest": "/en/publications/cr/issues/2019/08/06/republic-of-latvia-selected-issues-48567/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-12T15:05:08.41Z"
}