The budget deficit was always low

[roshniakter123]

Latvia needed a balanced state budget to maintain economic stability. and the state debt did not exceed 18% of GDP. Latvia has chosen a Western course for economic development, opening its borders to competition and foreign investment. Customs tariffs have been reduced and, in some cases, abolished, and all restrictions on exports have been lifted. Since 1997, foreign investment has begun to flow into Latvia, bringing with it new knowledge and technologies.


Along with economic reforms, Latvia has managed to establish malaysia mobile database the rule of law and limit corruption as much as possible. By 2005, 70% of Latvia's economy was private, while even in the last years of the Soviet Union, the share of the private sector was insignificant. Between 1997 and 2007, the average economic growth rate for 11 years was 8%, which brought the country closer to rich countries.


In 1999, Latvia embarked on the path to joining the European Union, receiving candidate status, and in 2004, it became a member of the EU and NATO. Prior to accession, the EU provided Latvia with financial and policy support for reforms. Since 2002, the lats have been pegged to the euro. Reforms in the 1990s and membership in the European Union laid the foundation for Latvia's rapid economic growth.