The fewer people living in Latvia, the greater the general government debt (according to Maastricht criteria) becomes. Data from the Central Statistical Bureau (CSP) show this picture. Although each of these indicators follows its own path, their opposing trends prompt the question – where are we heading, and what will be the outcome?

Debt – small or large?

At the end of 2021, the national debt reached 14.74 billion euros, which is 17.8 times higher than at the end of 2000. According to CSP data, the population at the beginning of this year was only 1.878 million, which is approximately 20% lower than it was at the turn of the millennium. In today's world, national debt is not something that can surprise anyone, as most of the world's countries have lived, are living and continue to live with a budget deficit, and therefore borrow. Latvia is no exception and has been living on credit the whole time; in other words, it always spends more than it can earn itself, and this must be covered by borrowing. (...)
Article: Fewer people, more debt