OREANDA-NEWS. November 19, 2007. At the moment, there can be talk that a "soft landing" has begun in Latvia's economy, Bank of Latvia President Ilmars Rimsevics told members of the press.

He pointed out that there is still rapid economic growth and Latvia's gross domestic product is also rapidly increasing, however, it is clear that the national economy is becoming more stable.

The development of the national economy had a disproportionate role in domestic spending, however, this is becoming more stable as the amount of loans issued and real estate activity is decreasing.

Rimsevics also emphasized that the current account deficit is still very high and that it is important that it is not determined by weak export figures, but strong import figures.

Also, the slowing down of imports is positive evidence that domestic demand is slowing down as well.

Rimsevics pointed out that when domestic demand slows down, exports must become the country's growth engine.