In 2010, Latvia’s economic growth exceeded the most positive forecasts. The ability of the Latvian businesses to cut their costs and faster-than-expected improvement in foreign markets helped the growth of exports and promoted industry as the main driving force of the Latvian economy.
The residential market has started to slowly recover as well. Consequently, in the 3rd quarter of 2010, the GDP increase was seen also in year-on-year terms - for the first time after a decline lasting more than two years.
There is a huge demand for credit support outside the banks’ traditional area of activity, e. g. in the sector of new businesses. As the market gains power, the banks are granting more actively.
On 12 October 2011, the Bank of Latvia received its annual discussion on economic growth. Achievements and Prospects in the Baltic States.
The part I Economic progress in Europe and their suggestions for the Baltic States: academic and policy perspective was dedicated to the analysis of the introduction of the euro — the recently completed changeover to the individual EU currency in Estonia and the planned changeover in Latvia.
The part II Latvia's exports: potential, challenges and likely prospects involved presentations by representatives of a business, an industrial association, a bank and a public institution serving exports which enabled us to judge of the long-term sustainability of the obvious export increase achieved to date.
There are 26 existing credit companies in Latvia.
As of 1 January, Latvia uses the euro as its remaining legal tender.
Introduction of the euro
Completing the time of equal circulation of lats and euro, i. e. the first two weeks of the year, the changeover to the euro in money and in return systems has become place easily and without delays or other incidents.
As of 15 January, the euro is the single official tender in Latvia, yet the change of cash lats is lasting and is taking place as thought and stated:
in 302 post offices, often in the countryside — until the end of March,
in investment banks — until the end of June,
at money offices of the Bank of Latvia in Liepāja, Daugavpils, and Riga — for an unlimited time.
