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Europe > Latvia, Republic of

You are looking at 1 - 10 of 29 items for :

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Cover IMF Staff Country Reports
Republic of Estonia: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper explains Estonia’s recent losses of export market shares. Estonia’s export market share has fallen sharply, signalling that exporters have difficulties to keep up with foreign competition. While the immediate cause of this decline can be traced back to an adverse combination of external shocks triggered by the war in Ukraine, signs of faltering export performance surfaced already in the aftermath of the global financial crisis, and thus predate recent shocks. Using a constant share decomposition, this paper shows that, unlike in Latvia and Lithuania, a significant portion of the decline in Estonia’s export share can be attributed to the ‘intensive margin’, i.e., a shrinking share of Estonia’s exports in the main destination markets—a sign of weakening external competitiveness and declining relative productivity. A few high-level policy implications can be drawn. Addressing the erosion of external competitiveness will require structural reforms aimed at enhancing productivity, removing impediment to a structural transformation of the economy toward more technologically intensive and higher value-added products and services, as well as efforts to ensure that real wage growth remains closely aligned with productivity growth. By addressing these underlying challenges, Estonia can restore external competitiveness and ensure continued convergence toward the income levels of EU most advanced economies and Nordic neighbors.
Keywords:
labor market liberalization; Within-Sector allocative efficiency; export market share; export share decline; TFP dynamics; Estonia's government spending; tax revenue-to-GDP ratio; Total factor productivity; Exports; Capital adequacy requirements; Productivity; Baltics; Global; Europe
Cover IMF Staff Country Reports
Republic of Latvia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Latvia
International Monetary Fund. European Dept.
The 2023 Article IV Consultation highlights that Latvia is facing an inflation shock, slow growth, and geopolitical challenges. The government will have to continue to deal with the spillovers in the Baltic region from the Russian invasion of Ukraine and the impact of sanctions imposed on Russia and Belarus, the cost-of-living crisis, and energy security. These short-term concerns are adding to the long-term policy challenge of sustaining the income convergence process. Latvia’s income convergence has already been lagging the other Baltic countries. Amid high uncertainty, the balance of risks is tilted to the downside. The main risks stem from an escalation of the war and associated sanctions, which could result in renewed increases in energy prices, energy supply disruptions in Europe, and weaker external demand. Global financial conditions could further tighten, with spillovers to Latvian banks and domestic credit growth. The paper recommends that structural policies should facilitate the green transition, reduce skill shortages, and boost productivity.
Keywords:
income convergence; shock support measure; inflation shock; government finance statistics yearbook; inflation momentum; bank credit risk indicator; Inflation; Energy prices; Fiscal stance; Baltics; Europe
Cover IMF Working Papers
Good Will Hunting: Do Disasters Make Us More Charitable?
Mr. Serhan Cevik
Humans are usually compassionate, caring and empathetic toward others, but are we really hardwired for altruism when a disaster hits? There is evidence that people exposed to natural disasters tend to behave more philanthropically, but most studies rely on small-scale surveys and experimental data. For that reason, this paper contributes to the literature by investigating whether the COVID-19 pandemic has altered prosocial tendencies and charitable donations, using a novel daily dataset of debit and credit card transactions. I conduct a real-time analysis of actual charitable donations in three European countries and find that the COVID-19 pandemic and government interventions have no significant effect on how much people contribute to charities as a share of total spending. A higher preference for precautionary savings in the midst of the pandemic appears to outweigh altruistic behavior, while government welfare programs crowds out private charitable donations.
Keywords:
Natural disasters; COVID-19 pandemic; charitable giving; donations; genorosity; prosocial behavior; card transactions; Baltics; Estonia; Latvia; Lithania; credit card transactions; government welfare program; real-time analysis; government intervention; pandemic shock; COVID-19; Consumer credit; Total expenditures; Global
Cover IMF Staff Country Reports
Republic of Latvia: 2019 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. European Dept.
This 2019 Article IV Consultation with Republic of Latvia highlights that the economy continued to expand rapidly in 2018, as growth surprised with a strong construction-driven upswing. Fiscal and current account deficits are at manageable levels, as is the public debt. The financial system remains stable, despite a significant balance sheet restructuring of banks servicing foreign clients. The growth outlook is favourable; however, risks weigh on the downside due to a less supportive external environment. The financial system remains stable despite a significant balance sheet restructuring of banks servicing foreign clients. Banks remains well capitalized and liquid, with capital levels about 40 percent higher than the euro area average and average liquidity coverage four times the regulatory minimum. Higher productivity and investment growth are needed to offset the impact of Latvia’s exceptionally unfavorable demographic trends and achieve robust long-term growth and rapid income convergence.
Keywords:
ISCR; CR; debt; lat; firm; World Bank-International Monetary Fund mission; Latvia; SDR; IMF staff estimate; fiscal policy; support productivity-boosting reform; labor market; SME lending; lending constraint; core inflation; Anti-money laundering and combating the financing of terrorism (AML/CFT); Credit; Productivity; Global
Cover IMF Staff Country Reports
Republic of Latvia: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper analyzes labor market challenges in Latvia. In the boom period leading up to the global financial crisis, the economy experienced widespread labor shortages and soaring wage growth. The bursting of the bubble led to a deep recession, high unemployment, and a sharp contraction in wages. With the economy now in its eighth year of recovery, Latvia is once again experiencing a tightening labor market—a situation exacerbated by unfavorable demographic trends. Latvia’s future prosperity will depend critically on whether it is able to address its labor market challenges. Employment protection legislation (EPL) is relatively restrictive. EPL refers to the procedures and costs associated with hiring and dismissing workers. Theory suggests that overly restrictive EPL reduces both job creation and job destruction and may slow productivity growth by raising labor adjustment costs for firms. Latvia’s tightening labor market calls for reforms that make the most of the country’s human resources. Reforms should aim to tackle barriers to employment, encourage more labor market participation, help Latvia’s citizens build new skills, and stem the decline in the working-age population.
Keywords:
ISCR; CR; wage; Latvia; worker; minimum wage; wage growth; wage inequality; envelope wage; wage adjustment; wage setting; Aging; Wages; Labor markets; Western Europe; Europe
Cover IMF Staff Country Reports
Republic of Latvia: Staff Report for the 2015 Article IV Consultation
International Monetary Fund. European Dept.
This 2015 Article IV Consultation highlights that Latvia’s strong recovery has recently slowed in the face of sluggish growth in the euro area and deteriorating economic conditions in Russia amid rising geopolitical tensions. GDP growth decelerated to 2.4 percent in 2014 reflecting weak demand and the prolonged closure of a steel manufacturer. In 2015, the weak external environment, particularly the sharp slowdown in Russia, will continue to weigh on exports and investment. This is expected to be mitigated, but not fully offset, by higher disposable income owing to lower oil prices and robust real wages, the reopening of the steel manufacturer, and the accommodative monetary stance of the European Central Bank.
Keywords:
ISCR; CR; GDP; current account; Latvia; euro; financial asset; executive board assessment; consumer price inflation; exchange rate; fiscal policy; liability position vis-à-vis nonresident; headline inflation; structural unemployment; Income; Credit; Exports; Baltics
Cover IMF Staff Country Reports
Republic of Latvia: Staff Report for the 2014 Article IV Consultation
International Monetary Fund. European Dept.
Latvia entered the euro area in January 2014 with the fastest rate of growth in Europe. The 2014 Article IV Consultation highlights that a slowdown in investment and exports was partly compensated by robust consumption demand, supported by rising real wages, bringing GDP growth in 2013 to 4.1 percent. Strong job creation reduced the unemployment rate to 11.3 percent by end-2013, close to its structural level. Consumer price inflation fell to an average of about zero in 2013, mainly owing to weakening energy prices. The 2013 general government deficit outturn of 1.0 percent of GDP was below the target of 1.4 percent.
Keywords:
ISCR; CR; euro; Latvia; structural unemployment; balance of payments; deficit; GDP; requirement; non-resident deposits; sovereign bond bond issue; NRD banks' capital adequacy ratio; financial asset; consumer price inflation; Labor markets; Credit; Real wages; Baltics; Europe
Cover IMF Research Bulletin
IMF Research Bulletin, March 2014
International Monetary Fund
The Research Summaries in the March 2014 Research Bulletin focus on efficiency of health expenditure (Francesco Grigoli and Javier Kapsoli) and employment growth in European Union countries (Bas B. Bakker and Li Zeng). The Q&A article looks at “Seven Questions on Financial Interconnectedness” (Co-Pierre Georg and Camelia Minoiu). The Research Bulletin also includes a listing of IMF Working Papers, Staff Discussion Notes, and Recommended Readings from the IMF Bookstore. Information on the IMF Economic Review—the research journal of the IMF—is also provided.
Keywords:
IRB; IMF research bulletin; bulletin; research; IMF bookstore; research journal; Thomson Reuters journal citation; IMF research; journal of the International Monetary Fund; Employment; Health care spending; Financial contagion; Expenditure efficiency; Global; Asia and Pacific; Western Hemisphere; Middle East and Central Asia; Europe; Africa
Cover IMF Staff Country Reports
Republic of Moldova: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper on the Republic of Moldova was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on September 17, 2012. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Republic of Moldova or the Executive Board of the IMF.
Keywords:
ISCR; CR; Moldova; GDP; FDI; asset; bank; Moldova FDI stock; FDI inflow; parent bank; remittances channel; exposure to Moldova; banking sector amount; close-to-balanced forex position; asset loss; Moldova's economy; bill growth; price competitiveness; Fiscal stance; Foreign direct investment; Fiscal sustainability; Commercial banks; Value-added tax; Europe; Western Europe; Eastern Europe; Global; Central and Eastern Europe
Cover How Emerging Europe Came Through the 2008/09 Crisis
How Emerging Europe Came Through the 2008/09 Crisis
An Account by the Staff of the IMF's European Department
Mr. Bas B. Bakker
and
Mr. Christoph A Klingen

Abstract

Emerging Europe was particularly hard hit by the global financial crisis, but a concerted effort by local policymakers and the international community staved off impending financial meltdown and laid the foundations for renewed convergence with western Europe. This book, written by staff of the IMF's European Department that worked on the region at the time, provides a unique account of events: the origins of the crisis and the precrisis policy setting; the crisis trigger and the scramble to avoid the worst; the stabilization and recovery; the remaining challenges; and the lessons for the future. Five regional chapters provide the analytics to put events into perspective. Dedicated chapters for all 19 countries of the region dig deeper into the idiosyncrasies of each economy and provide extensive economic data. A final chapter distills the lessons from the overall regional experience and the wide intraregional diversity. Taken together, they make this book an indispensible reference for economic scholars of the region and beyond.

Keywords:
BOOK; deficit; government; IMF staff calculation; crisis; exchange rate; percent of GDP; credit growth; foreign currency; banking system; Credit; Currencies; Exchange rates; Capital inflows; Global; Europe; Baltics; Western Europe; Eastern Europe; headline inflation; emerging Europe; Exchange rate arrangements