Republic of Latvia

Abstract

Cover -- CONTENTS -- CONTEXT -- RECENT ECONOMIC DEVELOPMENTS -- OUTLOOK AND RISKS -- POLICY DISCUSSIONS: STRENGTHENING FOUNDATIONS WHILE RIDING THE UPSWING -- A. Macro-structural Policies: Preserving Strong Growth -- B. Fiscal Policy: Toward a More Inclusive and Growth-Friendly Policy Mix -- C. Macro-financial Policies: Ensuring Efficient Financial Intermediation -- STAFF APPRAISAL -- BOX -- 1. Risk Assessment Matrix -- FIGURES -- 1. Real Sector -- 2. Fiscal Developments -- 3. Labor Market -- 4. Inflation -- 5. Balance of Payments -- 6. External Debt and Vulnerabilities in the Banking System -- 7. Banking Sector Developments -- 8. Inequality and Poverty -- TABLES -- 1. Selected Economic Indicators, 2013-19 -- 2. Macroeconomic Framework, 2013-23 -- 3. General Government Operations, 2013-23 -- 4. Medium-Term Balance of Payments, 2013-23 -- 5. Financial Soundness Indicators, 2007-17 -- ANNEXES -- I. External Sector Assessment -- II. Recent Developments in the BSFC Sector -- III. Impediments to Credit -- IV. Public Debt Sustainability Analysis -- V. External Debt Sustainability -- VI. Assessing the Impact of the Tax Reform -- CONTENTS -- FUND RELATIONS -- STATISTICAL ISSUES.