RIGA, Nov. 10 (Xinhua) -- Fitch Ratings has affirmed Latvia's credit rating at "A-" with a stable outlook, the Latvian Finance Ministry said on Monday.
According to the ratings' agency, Latvia's A- rating reflects an economic policy framework supported by the European Union (EU) and eurozone membership, and a relatively low, albeit rising, level of government debt and debt servicing costs.
According to Fitch's forecast, Latvia's growing defense spending will increase the general government deficit from 1.8 percent of GDP in 2024 to 2.6 percent in 2025. Latvia's budget deficit is expected to widen to 3.3 percent in 2026, in line with government forecasts.
Fitch expects the public debt ratio to rise to 48.6 percent of GDP in 2025 and stabilize at about 55 percent from 2027.
Fitch also projects real GDP growth to accelerate from 1.1 percent in 2025 to 2.1 percent in 2027 on stronger private consumption and solid investment.
The agency last published its assessment of Latvia's credit rating on May 9, 2025, when it affirmed the rating at "A-" with a stable outlook. ■
