Special decisive action is required / Day

by times news cr

2024-07-10 15:52:21

Once a year, Latvia, like other members of the International Monetary Fund (IMF), has the opportunity to look at what is happening “at home” with an independent view from the outside. Analyzing the conclusions of the IMF visits in the Baltic context, the economist of the Bank of Latvia, Anete Migale, concludes that the region’s challenges are similar: additional resources are needed to cover future expenses, we are facing similar structural challenges – the aging of society, labor productivity problems. At the same time, specific factors differ, which are reflected in different accents.

Compared to Latvia and Estonia, Lithuania has experienced faster income convergence during the last two decades. Although per capita income has stagnated in the last two years, as Lithuania experienced the biggest negative shock of trade conditions in the Eurozone, IMF forecasts show that after a shallow recession, economic growth in Lithuania will be faster this year than in our country. Also, in the case of Lithuania, special attention has been paid to the sustainability of the pension system, indicating the need for reforms.

On the other hand, in the case of Estonia, the focus is on aspects of competitiveness in order to recover the market shares lost in the last two years. The IMF indicates that targeted structural measures are needed to restore competitiveness.

In the field of climate, there are challenges for all the Baltic states, but this year they are especially emphasized for Latvia. “Although

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2024-07-10 15:52:21

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