Latvia has been given a positive outlook. The value of short-term obligations in national and foreign currency has been increased from BBB-/A-3 to BBB/A-2. The value of the free money flow and conversion is now increased from A- to A.
This is a very important evaluation of the Latvian economy and an important signal for foreign investors.
Latvia’s macroeconomic and fiscal indexes also are much better than expected. According to the Finance Ministry, Standard & Poor’s explains its decision by saying that Latvia’s political situation has become much better; the government has introduced fiscal discipline by reducing the budget deficit from 8.2% of GDP in 2010 to 1.6% of GDP in 2012.
The agency’s announcement states that Latvia’s economy is one of the most flexible and dependable in the EU. The decision to increase the country’s credit rating was made thanks to a swift recovery of Latvia’s economy after the social-economic crisis.
Standard & Poor’s also predicts that Latvia’s state debt will reduce in the future; fiscal indexes will improve, and the country’s economic growth will be less dependent on the financing of the external debt.
If any investor has decided to set up business in Latvia here can find more information about company formation.
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