RIGA, June 4 (Xinhua) -- The international credit rating agency S&P Global Ratings (S&P) has maintained Latvia's credit rating at A level with a stable outlook, according to the Baltic country's Treasury.
The stable outlook reflects the agency's expectation that the Russia-Ukraine conflict will not spread to the territory of North Atlantic Treaty Organization (NATO) members, including Latvia.
According to S&P's view, medium-term risks to Latvia's budgetary and growth performance arising from regional geopolitical developments are balanced by a projected cyclical economic recovery that will take hold in 2026 on the back of rebounding demand and supported by a ramp-up in investments combined with further loosened monetary policy.
S&P estimates that Latvia's economy will return to 1 percent growth in 2025 following the contraction in 2024. In tandem with a cyclical rebound in exports, S&P projects economic growth will accelerate and then hold steady over 2026-2028, averaging 2.3 percent annually.
S&P forecasts the general government balance to show a deficit averaging 3.5 percent of its gross domestic product (GDP) during 2025-2028.
S&P published a previous assessment on Nov. 29, 2024, when the credit rating of Latvia was affirmed at A level with a stable outlook.
