Republic of Latvia: Selected Issues Paper

June 16, 2016

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Format: Chicago

Republic of Latvia: Selected Issues Paper, (USA: International Monetary Fund, 2016) accessed December 24, 2024

Summary

The aim of this paper is to examine selected issues related to Latvia’s economic development. Latvia experienced a large macroeconomic adjustment in the aftermath of the crisis in 2007. The adjustment was characterized by internal devaluation via a combination of wage restraint and productivity gains. Latvia’s creditless recovery has taken unusually long to turn compared to international experience. Although lack of credit has not undermined recovery so far, support from the financial sector will be crucial for its continuation going forward. Emphasis on resuscitating credit growth is key to maintaining recovery. Focus should be on facilitating access to credit for small- and medium-sized enterprises and first-time borrowers, where market failures are the largest.

Subject: Bank credit, Banking, Credit, Labor productivity, Money, Production, Productivity, Total factor productivity

Keywords: Baltics, Bank credit, CR, Credit, Credit growth, Export orientation, Firm, Firm level difference, Firm productivity, Firms TFP, Global, ISCR, Labor productivity, Latvia, Lending, NRD bank, Oriented firm, Productivity, Risk model, Total factor productivity

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/172
Stock No:

1LVAEA2016002
ISBN:

9781475575668
ISSN:

1934-7685

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