The Latvian economy is developing too slowly, and government spending is growing faster than income - if the situation does not change, the country will face serious financial problems," said Martins Kazaks, president of the Bank of Latvia.
According to him, since 2019 the state's role in the economy has increased significantly, and this trend cannot continue indefinitely.
"Development is too slow, we can and must develop faster. We need to look towards cost reduction and towards faster development," Kazaks emphasized.
He also emphasized that about half of economic growth is achieved through loans. However, loans alone are not enough - skilled workers, new investments and a strong scientific base are needed.