Our economy is more stable than anyone predicted six months ago - Karins

RIGA - Taking into account the support provided by the state, the Latvian economy is much more stable than anyone forecasted six months ago, Prime Minister Krisjanis Karins (New Unity) pointed out after last night's government meeting.

Among other things, the Prime Minister answered a question regarding the possibilities of additional support for specific sectors.

Karins emphasized that the government has already made many decisions to provide very extensive support to both entrepreneurs and various groups of the population in the amount of almost EUR 600 million, and this support is expected to increase.

The Prime Minister emphasized that a working group chaired by the Minister of Finance, Janis Reirs (New Unity), regularly reviews what other support or benefits may be needed. Karins pointed out that this working group also addressed the issue of support for large shopping centers, given that a large part of their stores will be closed for some time to come, so the state will also come up with support for them.

The development and decision-making of support is an ongoing task, the result of which is obvious, the head of government emphasized. Very large sums of money have flowed into the economy, and, according to the Bank of Latvia, this is one of the reasons why the economic downturn has been smaller than forecast, the Prime Minister said.

"Our economy is much more stable than anyone predicted it six months ago," Karins emphasized. He pointed out that the government is aware that the money paid in benefits and support are funds that has been borrowed and that will have to be returned, but all these benefits are one-off. Consequently, as the economy grows, Latvia will also be able to repay these debts, the Prime Minister said.