Latvia records increase in national debt, almost half of GDP size

Latvia's national debt has accumulated to €19 billion at the end of 2024, which is equal to 47.7% of GDP. 

This new number was published by the State Treasury and amounts to an increase of €1.5 billion over the year, Caliber.Az reports citing Russian media. 

"The increase in national debt was driven by borrowing measures taken last year to meet general financing needs, including covering the state budget deficit and debt obligations," the report said of the debt level, which stood at 43.1% of GDP at the end of 2023..

At the same time, Latvia's budget deficit in 2024 amounted to €849.6 million, or 2.1% of GDP, which is a 0.3 percentage points decrease from 2023 and 0.7 percentage points below the forecast from last autumn. The finance ministry attributed the lower-than-expected deficit primarily to revenues in January 2024 that exceeded expectations, which were counted towards the 2024 budget. Lower actual spending on EU-funded projects and key government functions, where planned expenditures were not fully utilized, are also credited as contributors to this change.

Consolidated budget revenues increased by €1.5 billion, or 9.7%, compared to 2023, reaching €17.1 billion. This growth was largely driven by an increase in foreign financial aid, which rose by 21.9% to €1.8 billion. Tax revenues amounted to €13.6 billion, reflecting a 7.8% increase.

By Nazrin Sadigova