Article

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.