Latvia's national debt has tripled over the past 20 years, raising concerns about fiscal policy and the rising costs of debt service.
Latvia's national debt has risen significantly in the last two decades, increasing threefold from about 15% of GDP in 2004 to approximately 48% last year. This dramatic rise in debt has been accompanied by a quadrupling of debt servicing costs, primarily driven by rising interest payments. Economists indicate that this trend is concerning and reflects a lack of effective fiscal policies aimed at stabilizing the debt levels, especially after economic crises when debt is expected to decrease.
