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This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Latvia.

Economic situation

The Commission has made four country-specific recommendations to Latvia to help it improve its economic performance. These are in the areas of: public finances; education and research and innovation; labour market and health; public administration and justice system.

Economic outlook

The Commission publishes macroeconomic forecasts for the EU and the Member States three times a year, in the spring (May), in the autumn (November) and in the winter (February). These forecasts are produced by the Directorate-General for Economic and Financial Affairs (DG ECFIN).

EU Financial assistance

Between December 2008 and January 2012 Latvia received financial assistance under a balance-of-payments programme. Latvia is now subject to post-programme surveillance. To find out more:

Fiscal surveillance

Assessments of Latvia’s convergence programme

As required by the Stability and Growth Pact, each spring Latvia submits a convergence programme which presents an update of the medium-term fiscal strategy.

Based on an assessment by the Commission prepared by DG ECFIN, the Council adopts an opinion on the programme and country-specific recommendations in the scope of the European Semester.

Euro area Member States submit stability programmes while countries outside the euro area submit convergence programmes.

The EU Excessive Deficit Procedure and Latvia

Currently, Latvia is not subject to an Excessive Deficit Procedure.

Macroeconomic surveillance

National reform programme

As part of the Europe 2020 strategy for a smart, sustainable and inclusive EU economy, each spring Latvia submits a national reform programme (NRP). Based on an assessment by the Commissionpdf(270 kB) Choose translations of the previous link  prepared by DG ECFIN, the Council adopts country-specific recommendations in the scope of the European Semester.

Macroeconomic Imbalance Procedure and Latvia

The Macroeconomic Imbalance Procedure (MIP) is a surveillance mechanism that aims to identify potential risks early on, prevent the emergence of harmful macroeconomic imbalances and correct the imbalances that are already in place. The annual starting point of the MIP is the Alert Mechanism Report: Based on a scoreboard of indicators and economic judgment, it is a filter to identify countries and issues for which a closer analysis (in-depth review) is deemed necessary. The outcome of these in-depth reviews forms the basis for further steps under the MIP.

No in-depth review has been carried out for Latvia so far.