Latvia is the poorest country of Eurozone – income per capita in Latvia was equal to only 58% of that of the average in Eurozone. The difference is rather large. For example, in Estonia this index was 65%, as reported by Swedbank senior economist Lija Strašuna.
According to the bank’s economist, this provides a large degree of challenge – Latvia has a long road ahead. On the other hand, whether or not Latvia manages to overcome this income barrier depends on the residents’ ability. Membership in the ‘euro club’ can help Latvia improve its economic and welfare level. Only a reasonable and well-structured fiscal policy can help achieve this. Unfortunately, Latvia is also a leader in income inequality in Eurozone. This is another problem that can only be resolved by local politicians.
She adds that Latvia has already done much and is currently one of the strongest countries in Eurozone. Latvia has been the most rapidly growing economy among countries of Eurozone for over a year now. This can be seen in the developments in Latvia’s job market – the proportion of job seekers dropped below 12% in 2013 (below the average in Eurozone).
‘Of course, these digits should be considered with a certain degree of caution, because the economic situation among countries of Eurozone is very different. We certainly do not want to end up like Greece or Portugal. We should instead learn from Germany or our neighbour Estonia. Latvia falls behind some of the strongest countries of Eurozone. This means both a larger potential and a larger list of things to do,’ – the economist concluded.
Source: Baltic News Network