Premier says some economic problems to be over this year

(LETA) - Part of the state's economic problems will be over this year already, and there are first signs of stabilization visible in the economy right now, as Prime Minister Valdis Dombrovskis (New Era) stressed at a press conference today.

The economy is recovering, and "from deep recession, we are now moving toward stabilization," stressed Dombrovskis.

A part of the economic problems will end this year, however, the problem of unemployment will remain very pressing. Unemployment has a cyclical character - the moment the economy is in free fall, unemployment levels keep steady for some time, but when the economy starts to recover, unemployment remains high for a while, Dombrovskis explained.

As reported, Dombrovskis' Cabinet was approved by a Saeima vote on March 12, 2009.

The most critical period for the government is now past; however, there are still important challenges to come, said Dombrovskis, commenting earlier on his first year in office.

The Dombrovskis government is the 34th Cabinet of Ministers in the history of independent Latvia. The government is made up of New Era, Civic Union, For Fatherland and Freedom/LNNK, the People's Party and the Union of Greens and Farmers.

Jānis Bagātais LETA

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