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

According to Standard&Poor’s, the upgrade reflects Latvia's strong economic performance, better than anticipated external sector indices, and a well thought-out and cautious fiscal policy, the Ministry of Finance said in a statement to the media.

"It is an important achievement for our country, which was accomplished by working continuously and persistently to improve our economy that has now been recognized by one of the largest rating agencies in the world. The fact that Latvia is among the "A" group rating countries means international recognition. It also means yet higher future standards and new tasks. This is an opportunity for us to work jointly and demonstrate other countries that we can stay in this group in the long run," said Minister of Finance Andris Vilks (Unity).

Standard&Poor’s report indicates that in 2013, Latvia's economy, with a 4.1% increase in gross domestic product (GDP), was the fastest growing economy among all European Union member states. In 2014, the rating agency forecasts a GDP increase of 3.7%, which in 2015 to 2017 could stabilize at around 4.3%. The agency notes Latvia's achievements in reducing the budget deficit, as well as improvements in the fiscal framework as the Fiscal Discipline Law has been passed in Latvia.

The agency also notes the low interest rates of the State Treasury and its work on refinancing Latvia's loans in the international capital market.