Economists warn of a fiscal dead end: Latvia's budget deficit could reach 5.4% within two years

The state of Latvia's economy has become a source of concern for economists, with several specialists warning that a serious crisis could arrive in just three years. In their view, shrinking borrowing and revenue could push the country to the brink of insolvency. The topic is discussed in the video programme "Jauns jautājums" on the news portal Jauns.lv, where journalist Sandris Metuzāls talks with Inna Šteinbuka, a doctor of economic sciences and leading researcher at the University of Latvia.

Why a "dead end" is mentioned

The term "fiscal dead end" is being used to describe the situation. It is linked to forecasts that the state budget deficit will reach 5.4 percent in two years. At the same time, public debt could climb to a level that exceeds Latvia's ability to repay it.

What the programme covers

The conversation with Šteinbuka seeks to establish how bad the state of the economy really is, what future lies ahead and what can be done to improve the situation. The programme, available on Jauns.tv, offers her conclusions and proposed solutions.