Latvia's Economy - on the Path of Recovery

Over the past years we have taken the difficult measures needed to stabilize the Latvian economy, including in public finances, and laid the foundations for its recovery. Latvia has not wasted opportunities provided by the crisis, but used them to become a more business- friendly, export- oriented, and competitive economy. Some industries have even penetrated into new markets where Latvia’s potential had not been fully utilized- such as the Southern Caucasus and Central Asia.

Latvia has demonstrated that with rigorous self- discipline it is not only possible to overcome the crisis, but also take advantage of it to lay foundations to a thriving economy. It has been a tough ride, but lessons have been learned and applied for the future benefits. Latvia learned many things when it regained its independency from the Soviet Union. Latvia became a nation of rational heroes, people who found through their personal fate that it made sense to be heroic and stand up for their implausible dream. Latvians had gone through fire and water for their nation’s independence, and they were prepared to do so again, fearing the financial crisis could undermine their sovereignty. Today, Latvia stands out as an example of how crises should be resolved: early, fast, and surgically, mobilizing popular understanding and support. Walter Bagehot, founder of The Economist magazine, said:’’ The greatest pleasure in life is doing what people say you cannot do’’. In Latvia’s crisis what people said could not be done was done, and it obviously was the best solution. We all hope that the chosen way will be the best for our economy, for us and our children. We all hope that life in the future will change for the better.

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