Latvian financial system is prospering, however boosting productiveness, enhancing social safety and transitioning to a low-carbon productive mannequin are very important for sustainable and inclusive progress


 

29/05/2019 – The Latvian financial system is prospering, with robust job progress driving convergence with extra superior economies. Efforts ought to now give attention to decreasing inequality, responding to the challenges posed by inhabitants ageing and making progress stronger, inclusive and greener, in response to two new OECD experiences.

The most recent OECD Financial Survey of Latvia says the broad-based upswing underway has been largely pushed by home demand. It tasks strong progress of two.7% in 2019 and 2020, whilst world commerce weakens and funding slows. The Survey underscores the significance of boosting productiveness progress to make sure quick meet up with residing requirements in superior OECD nations, as Latvia’s working-age inhabitants declines.

“Because of sound macroeconomic insurance policies and robust reform efforts, Latvia has achieved spectacular financial progress over current years,” stated OECD Secretary-Common Angel Gurria, presenting the Survey alongside Latvian Minister of Economics Ralfs Nemiro and Minister for Environmental Safety and Regional Improvement Juris Pūce.“Unemployment is falling, residing requirements and well-being are enhancing, and Latvia has decoupled financial progress from greenhouse gasoline emissions, by means of trail-breaking use of renewable vitality. To construct on this efficiency, it’s important that Latvia continues financial reforms that make progress extra strong, inclusive and environmentally pleasant,” Mr Gurria stated (learn the complete speech).

Stronger productiveness progress is required to enhance residing requirements and thus make Latvia extra enticing for international buyers and home employees alike. It will require extra funding in abilities, analysis and innovation, in addition to larger competitors throughout the financial system, significantly in sectors the place state-owned or municipal enterprises have giant weights.

Ongoing efforts to strengthen the capability of the judiciary and regulation enforcement companies are essential to combat financial crimes and the massive casual financial system, which is holding again higher entry to credit score, coaching and social safety.

To enhance well-being and cut back giant regional inequalities, Latvia ought to guarantee common entry to healthcare and affordability of housing. Deliberate territorial reforms that merge or higher coordinate small municipalities will guarantee higher provision of public providers, together with public transport, waste administration and water, in response to the Survey.

Sustained financial progress is more likely to drive up environmental pressures in Latvia, in response to the primary OECD Environmental Efficiency Evaluate of Latvia. The nation has applied the EU environmental acquis and has come a great distance for the reason that mid-2000s in bringing its environmental efficiency nearer to the OECD common, but it surely nonetheless has work to do, in response to the Evaluate.

Latvia has made progress in decreasing excessive ranges of air air pollution and has improved entry to and high quality of water. Its use of biomass as its most important vitality supply locations it among the many OECD’s leaders in renewable vitality. But extra must be accomplished to cut back the air air pollution, which nonetheless impacts practically 90% of the inhabitants, to enhance recycling and vitality effectivity in homes, and to maneuver in the direction of a low-carbon financial system, in keeping with the 2015 Paris Settlement. A precedence must be agriculture and forestry, which play key financial and social roles however are a rising supply of greenhouse gasoline emissions and pressures on ecosystems.

The Evaluate recommends Latvia use stronger worth indicators to cut back environmental pressures. It additionally requires elevated funding in environment-related innovation, infrastructure and providers like waste sorting and recycling, and safety of pure habitats and biodiversity. EU funds must be complemented with private and non-private funding.

An Overview of the Financial Survey of Latvia, with the principle conclusions, is accessible at: http://www.oecd.org/economy/latvia-economic-snapshot/. An Overview of the Environmental Efficiency Evaluate of Latvia is obtainable at: http://www.oecd.org/environment/country-reviews/oecd-environmental-performance-reviews-latvia-2019.htm.

For additional data, journalists can contact contact Lawrence Speer (+33 1 4524 7970) within the OECD Media Workplace in Paris (+33 4524 9700).

 

Working with over 100 nations, the OECD is a world coverage discussion board that promotes insurance policies to enhance the financial and social well-being of individuals all over the world.

 

 



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