Latvia Retains “A-” Credit Rating with Stable Outlook

Latvia has retained its “A-” long-term credit rating with a stable outlook, according to the latest assessment from Fitch Ratings.

The rating reflects strong fiscal management, EU and eurozone membership, and a moderate level of public debt, even as some internal costs continue to rise.

Fiscal and Debt Outlook

Fitch forecasts Latvia’s general government deficit to widen from 1.8% of GDP in 2024 to 2.6% in 2025, reflecting increased defence spending.

By 2026, the deficit is projected to reach 3.3%, consistent with government estimates.

The country’s public debt ratio is expected to climb to 48.6% of GDP in 2025 and stabilize around 55% by 2027, remaining below the eurozone average.

Growth Prospects

Fitch projects Latvia’s real GDP growth to strengthen from 1.1% in 2025 to 2.1% in 2027, supported by stronger private consumption and investment momentum.

The agency last confirmed Latvia’s “A-” rating in May 2025, maintaining confidence in its fiscal management and macroeconomic resilience.