WorldWay Comprehensive News: According to a recent report by the Baltic News Service, the international credit rating agency Standard & Poor's predicts stability for Latvia in the future, upgrading Latvia's credit rating (long-term debt in local and foreign currency) from "BBB+" to "A-". The Latvian Ministry of Finance announced that the main basis for this decision was: the stable economic development of Latvia, better-than-expected foreign trade indicators, and prudent fiscal policy. Latvian Finance Minister Vilks declared: "This is a great achievement for our country and the result of long-term efforts in economic development. Classifying Latvia as an A-rated credit country means international recognition, and it also means that we will face greater tasks in the future."
The S&P report noted that Latvia's GDP grew by 4.1% in 2013, making it the fastest-growing member state in the European Union. Latvia has reduced its fiscal deficit, passed laws on fiscal discipline, maintained low-interest government debt, and rapidly reduced this year's deficit, with a stable banking sector. According to the agency's forecast, Latvia's GDP is expected to grow by 3.7% in 2014, with an average annual growth of 4.3% from 2015 to 2017. Regarding the prospects for Latvia's economic development, the agency believes that weak fiscal policy guidelines and a decrease in non-resident savings will pose risks.
After the upgrade of Latvia's credit rating, it is now on the same level as Lithuania, but three levels lower than Estonia. Experts from the Swedish bank believe that the upgrade for Latvia is justified, although it is somewhat overdue. Latvia had already reached this level some time ago, but the gap with Estonia remains too large. If no unexpected events occur in the future, Latvia's credit rating is expected to continue to improve.
Edited by WorldWay
