Economics, Good for Business, Latvia, Rating
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Friday, 29.03.2024, 16:52
Fitch affirms Latvia’s rating at 'A-'; outlook stable
Fitch cited Latvia’s moderate budget deficit and government
debt level, as well as institutional resilience ensured by membership in the EU
and the euro area as the main factors supporting Latvia’s high credit
rating.
Residents’ low income, as well as a higher instability of
gross domestic product and external debt as compared to other countries with
similar credit rating were mentioned as Latvia’s main issues.
The ratings agency forecast Latvia’s GDP growth at 2.6% for 2019-2021, demonstrating a slower growth than the average estimate
of 2.8% due to weaker investments and export growth, lower demand and
slower apsorbtion of the EU funds.
Fitch also expects Nordic banks to keep playing an important
role in Latvia, while developments in the non-resident banking segment are not
expected to have a significant effect on the banking sector.