Outward unbalance risks in Latvian economy | Ārējās nesabalansētības riski Latvijas ekonomikā
2008
Skribane, I., University of Latvia, Riga (Latvia). Faculty of Economics and Management | Eglite, S., University of Latvia, Riga (Latvia). Faculty of Economics and Management
Along with the rapid economic growth some problems appeared both in internal and external sector. One of the key internal sector problems is growing inflation; another problem in Latvia is imbalance of external sector - relatively high current account deficit, which is determined by negative trade balance. Although high current account deficit in Latvia causes additional risks for economic development, thus making Latvia dependent from the inflow of foreign capital, which in the result can lead to financial and currency crisis.
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