This country page is a centralised resource for the analytical work on the economy of Latvia performed by DG ECFIN. It provides links to the most important pages and documents, such as the European Commission's regular economic forecasts and the country’s compliance with the Stability and Growth Pact.
Last update: 27/06/2011
The Commission publishes macroeconomic forecasts for the EU and the Member States twice a year, in the spring (May) and in the autumn (November). These forecasts are produced by the Directorate-General for Economic and Financial Affairs (DG ECFIN) and include a chapter on Latvia.
DG ECFIN also produces more limited "interim forecasts" in February and September, wich contain one-year projections of GDP growth and consumer price inflation for the euro area, the EU and seven large Member States.
Monitoring the budgetary situation in Latvia
As required by the Stability and Growth Pact, at the end of each year Latvia submits an update of the medium-term fiscal strategy it first presented in mid-2004. Euro area Member States submit stability programmes while countries outside the euro area submit convergence programmes. Based on an assessment by the Commission prepared by DG ECFIN, the Council adopts an opinion on each programme.
>> All programmes of Latvia, Commission assessments, Council opinions, working documents
Currently, Latvia is subject to an excessive deficit procedure.
The Commission’s annual public finance report prepared by DG ECFIN – entitled " Public Finances in EMU" – includes a chapter on Latvia.
Latvia has not yet adopted the euro as its currency. As part of the preparations to join the euro area, Latvia is a member of the Exchange Rate Mechanism II (ERM II). It will join the euro area as soon as it fulfils the necessary conditions as defined in the 'Maastricht' convergence criteria.
Progress toward meeting these criteria is assessed by the Commission and the European Central Bank in regular convergence reports.
As part of the Europe 2020 strategy for a smart, sustainable and inclusive EU economy, Latvia reports each year on the implementation of its national reform programme (NRP).
>> Five years of an enlarged EU. Economic achievements and challenges (European Economy 1/2009)
>> EMU@10: successes and challenges after 10 years of Economic and Monetary Union (European Economy 2/2008)
>> Enlargement, two years after - an economic evaluation (Occasional Papers 24/2006)
>> The tale of the Baltics: experiences, challenges ahead and main lessons (Economic Briefs 10/2010)
>> Cross-country study: Economic policy challenges in the Baltics and Summary for non-specialists (Occasional Papers 58/2010)
>> Baltic convergence: steep and yet stable? (Country Focus 15/2005. September 2005)