Recently, Christian Weise, head of a project monitoring delegation from the European Commission, expressed appreciation for Latvia's efforts in maintaining robust economic growth, reducing the fiscal deficit, and implementing a responsible fiscal plan. Latvia's 2014 fiscal budget will reduce the fiscal deficit to 0.9% of GDP and will continue to focus on improving income inequality and supporting low-income families and families with children. Considering that Latvia needs to repay 3 billion euros in international loans between 2014 and 2015, the country must continue to adhere to a strict fiscal policy.
According to preliminary estimates from the Central Statistical Bureau of Latvia, the country's economy grew by 4.2% year-on-year in the third quarter of this year, primarily driven by growth in the manufacturing (2.5%), retail (3%), and construction (10%) sectors. The economy is expected to have grown by 1.2% quarter-on-quarter in the third quarter.
Meanwhile, the foreign exchange reserves of the Bank of Latvia at the end of October stood at 5.906 billion euros, an increase of 2.48% compared to the end of September. Of this amount, 5.525 billion euros were in convertible foreign currencies, 244 million euros were in central bank gold reserves, 137 million euros were in IMF Special Drawing Rights, and the reserve position was 60,000 euros.