Analytics, Economics, Financial Services, Investments, Latvia, Rating

R&I indicates that Latvia's economy continues to show steady growth, with a moderate inflationary pressure. The country's financial system has increased stability, and banks lending functions are expected to improve. Although the trend of non-resident deposits requires attention, it is unlikely that this will trigger turmoil in the financial system.

Also incorporating its view that the government's fiscal position remains sound R&I believes that real gross domestic product will continue to grow around 4% on the back of a recovery in the European economy.

Latvia's foreign currency issuer ratings by other rating agencies are as follows: Moody's Investors Service – "Baa2" with positive outlook, Standard&Poor's – "BBB+" with positive outlook, Fitch Ratings – "BBB+" with stable outlook, and R&I – "BBB" with stable outlook.