IMF Staff Country Reports

Republic of Latvia: 2006 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Latvia

Publication Date:

October 12, 2006

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The Latvian economy has made remarkable strides, combining macroeconomic stability with rapid income convergence. An upfront policy tightening is needed to contain near-term overheating and secure a soft landing. Fiscal restraint is needed to counter the sizable demand stimulus already in play. Moderating credit growth is essential to relieve overheating pressures. Risks from the credit boom and delayed euro adoption reinforce the need for a strong regulatory and supervisory framework for banks. Safeguarding competitiveness while narrowing the wage gap requires scaling the technology ladder.

Series:

Country Report No. 2006/353

Subject:

Balance of payments Banking Credit Current account deficits External debt Financial institutions Fiscal policy Loans Money