Bank of Latvia President – pleased with 2011 budget consolidation agreement
The Bank of Latvia President Ilmars Rimsevics
The Bank of Latvia President Ilmars Rimsevics (Ilmārs Rimšēvičs) is contented with the negotiation first round with the international lenders about the amount of 2011 budget consolidation.
Considering not only the extent of consolidation but the national economy recovery trends, this is not a bad result, told Rimsevics, after the meeting with the President of Latvia Valdis Zatlers.
Rimsevics admitted that many experts thought there would be even deeper economic crisis in Latvia; however, the national economy is in the process of recovering and the scenario, which even the most optimistic economists did not predict, may come true – the economy concludes this year with a zero balance, reports LETA.
He reminded that the Bank of Latvia’s standpoint on the issue regarding the consolidation measures has remained the same, namely, the budget cuts must be done at the expense of structural reforms.
If the taxes are raised, there is a risk that the consumption will decline and, consequently, the economic growth will slow down, emphasizes the bank’s President, reminding that the next year’s gross domestic product (GDP) growth forecasts have currently been raised from the previous 2.5% to 3.3%
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