Moody's Affirms Latvia's Credit Rating at A3 with Stable Outlook
Moody's has affirmed Latvia's credit rating at A3 with a stable outlook, indicating strong investor confidence in the country's fiscal management, according to Prime Minister Evika Siliņa. The stable outlook considers heightened geopolitical risks, which are somewhat alleviated by NATO membership. Moody's projects Latvia's GDP growth at 1.7% for 2025 and 2.4% for 2026, while government debt is expected to rise from 46.6% of GDP in 2024 to 49.6% by 2026 due to increased defense spending.

Moody's affirmed Latvia's credit rating at A3 with a stable outlook on January 16th. Prime Minister Evika Siliņa highlighted the affirmation as a sign of investor trust in Latvia's fiscal management. The stable outlook reflects elevated geopolitical risks mitigated by NATO membership.
Moody's forecasts Latvia's GDP growth at 1.7% in 2025, increasing to 2.4% in 2026. Government debt is projected to rise from 46.6% of GDP in 2024 to 49.6% in 2026 due to increased defense spending. Moody's previously affirmed the rating on July 25, 2025.




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