Coun­cil: Es­to­nia and Lithua­nia are one step ahead of Latvia fis­cal dis­ci­pline-wise

Lately, Es­to­nia and Lithua­nia have been one step ahead of Latvia in terms of fis­cal re­spon­si­bil­ity, said chair­man of Fis­cal Dis­ci­pline Coun­cil Jā­nis Platais in an in­ter­view to Latvi­jas Ra­dio.

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When asked how Latvia’s eco­nomic de­vel­op­ment looks when com­pared to other Baltic States, Platais said ev­ery coun­try has its good and bad sides. Nev­er­the­less, Lithua­nia and Es­to­nia have ac­com­plished bet­ter re­sults than Latvia in mea­sures to bal­ance the bud­get. He says that Fi­nance Min­istry’s GDP out­look for 2018 and 2019 is re­al­is­tic, and Latvia’s econ­omy could grow by 4% this year. Latvia’s econ­omy grows at an av­er­age rate of 3% ev­ery year, which is more rapidly than the econ­omy’s po­ten­tial. Ac­cord­ing to him, de­vel­op­ment de­pends on sev­eral pos­i­tive fac­tors, such as good eco­nomic sit­u­a­tion in the world and in­ten­sive re­al­iza­tion of fi­nances pro­vided by the Euro­pean Union.

Platais pre­dicts that eco­nomic growth will have reached its peak in 2020 and 2021. Af­ter that, how­ever, eco­nomic growth will slow down. The head of the Fis­cal Dis­ci­pline Coun­cil notes that the econ­omy is al­ready show­ing signs of over­heat­ing. «The longer we save up our prob­lems, the more quickly signs of macroe­co­nomic un­bal­ance and over­heat­ing sur­face,» said Platais. He added in his in­ter­view that no dra­matic mea­sures are needed at the mo­ment.

Sin­tija Zan­der­sone /LETA

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