The Latvian economy is looking well after Fitch provided an A- rating with a stable outlook. The European Commission also expects Latvia to maintain its economic stability by the end of 2015 and foresees a slight growth for 2016. You can obtain more information about the country’s current economic status from our Latvian lawyers.
Fitch Ratings issued a report on the Latvian economy at the beginning of November and provided its last forecast for 2015 and a few prospects for 2016. According to the agency’s report, Latvia maintains its A- credit rating for a long-term foreign and local currency issuer default with a stable outlook for 2016. Latvia’s economic stability comes mainly from growth registered by several industries and exports. The economy is expected to grow by the end of the year by 3%. However, Latvia has greater potential for economic growth in the future. The stability is given by the Latvian banking sector and the number of foreign citizens depositing money with local banks.
The agency also foresees that debts decline in the private sector especially, and the influx of foreign investment will help Latvia to reduce its overall debt and thus see higher economic growth. Latvia’s Gross Domestic Product is expected to increase 2.4% by the end of the year and to go up to 3% in 2016. For 2017, Fitch forecasts a 3.3% growth which is in line with the European Commission’s previsions.
The European Commission’s forecasts are based on the increase in domestic demands and the reduction of energy costs which will counter any negative impact on Latvia’s economy. An increase of foreign investments is also expected due to the fact that Latvia absorbed and uses very well EU funds in order to support companies.
The EC also provided a good outlook for Latvia’s export industry which has surpassed this year’s expectations by resourcing to other markets in and outside the EU. However, Latvia still needs to work on the transportation and tourism industries which could provide immense investment possibilities and attract international enterprisers.
If you want to open a company in Latvia and need advice on what the best industry to invest in is, you can contact our lawyers who will provide you with personalized solutions.
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