This is right time to develop stronger economy in Latvia - Kazaks

RIGA - This is the right time to develop stronger economy in Latvia, said Bank of Latvia president Martins Kazaks in an interview with commercial TV3 television today.

He said that Russia's war in Ukraine has accelerated the processes that Latvia would have to do in any way. "The war forces us do it now instead of stretching in time," Kazaks said.

He noted that by making itself economically independent from Russia, Latvia will develop much more stable and predictable economy. "This is the time to develop stronger economy," he said.

Kazaks said that it was clear already earlier that non-renewable energy resources will become more expensive, and the world cannot live much longer with the present climate change.

"These upcoming changes were clear to us earlier. Now we know that this has to happen faster," said Kazaks.

The central bank president said that the inflation will slow down because central banks will raise their rates, and energy resource prices cannot grow endlessly. Unfortunately, wage growth will be slower than consumer price growth.

At the same time, he said that there are no reasons to delay investments. "Yes, prices have risen. Yes, uncertainty is high. At the same time, this is the time to develop future's economy," said Kazaks.