Dombrovskis: EC report confirms Latvia is on right path

The European Commission's (EC) positive report is clear confirmation that Latvia's economic stabilization program is being successfully implemented, and that reduction of the state budget deficit is being done according to plan, declared Prime Minister Valdis Dombrovskis (New Era).

The country's financial stability is the basis for economic recovery. This report by the EC is also a positive signal to the international financial market which allows us to foresee the gradual raising of Latvia's credit rating. It is clear that stabilization of the country's credit rating is a state-level priority, and will give a positive impulse to the economy, improving the investment environment, stimulating export and allowing the renewal of loans, indicated the premier.

As previously predicted, the first signs of improvement can already be seen in manufacturing, which forms a good basis for economic recovery. This year, those spheres which have been showing growth will continue to expand. With this, the economic slump, which at the end of last year was still comparatively rapid, will slow significantly, and the renewal of growth is predicted for the second half of the year.

The government's main tasks for this year will be work on measures for heating up the economy and the issue of employment, as unemployment is the main social problem at present. But with economic recovery will also come renewed demand for labor, as the two are closely connected, LETA was informed by the prime minister's press secretary, Liga Krapane.

Finance Minister Einars Repse (New Era) indicated that overall, the EC's assessment was correct and objective, is in line with the reforms being carried out and corresponds with the economic stabilization program and the agreements concluded with international donors.

At present, signs of stabilization can be seen in the Latvian economy. The financial market has regained confidence, and percentage rates have returned to pre-crisis levels. Competitiveness is improving thanks to optimization of manufacturing processes, improvement of productivity and lower labor costs, and the trade sector is starting to come back to life, indicated Repse.

The minister stresses that Latvia has carried out serious and effective measures, as reflected in the budget.

LETA

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