As Latvia's integration into the European Union (EU) is seen as an irreversible process and a significant constraint on eventual risk probability, for the first time since 1997 the international rating agency Moody's Investors Service upgraded Latvia's credit rating from Baa2 to A2 with regard to longterm loans in foreign currency and Latvia's eurobonds and from Prime2 to Prime1 with regard to shortterm liabilities in foreign currency.
In its autumn report on economic developments in the accession countries, the European Commission retained for Latvia the highest annual GDP growth projections, at 5% in 2000 and 5.5% in 2003, among the accession countries. As projected, economic growth was more pronounced in the third quarter than in the first half of the year.