The international credit rating agency, S&P Global, has affirmed Latvia’s sovereign credit rating at A/A-1 with a stable outlook, unchanged from its previous report in May 2025, LSM reports. The agency noted persistent geopolitical uncertainty and elevated regional security risks, but expects Latvia to adhere to prudent fiscal policy and to withstand external headwinds in 2026-2028. Latvia’s GDP per capita has risen by almost 30% over 2021-2025, S&P added. The agency forecasts that Latvia’s real GDP will rise by 1.5% in 2025 and 2.25% in 2026, driven by investments, EU funding, and private consumption. S&P expects the general government budget deficit to average at 3.8% of GDP in 2026-2028.
Read Less, Know More.