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The positive report of the European Commission (EC) clearly shows that the economy stabilisation programme of Latvia is being implemented successfully and reduction of the state budget deficit is consistent with the plan. Country’s financial stability lays basis for economic recovery.
This EC report is a positive signal to the international financial market, therefore it could be expected that the credit rating of Latvia will also gradually improve. It is certain that stabilisation of the country’s credit rating is a national priority which provides a positive impetus for the economy, improves the investment environment of Latvia, promotes exports and restores credit flow.
As expected, the first signs of improvement were observed in industrial production which is a good basis for recovery of the economy. This year the number of those industries which show improvement will grow further. Thus, the rate of economic downturn which was still rather high at the end of the previous year will be considerably lower but growth is expected to resume in the second part of the year.
This year the main task of the Government is work on the economy warm-up and employment measures as currently unemployment is the biggest social issue. Recovery of the economy will also re-establish demand for labour. These two aspects are closely related.
Līga Krapāne
Press Secretary of the Prime Minister
Phone: 67082865?29480299
E-mail: prese@mk.gov.lv
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