Sustaining convergence, however, is a process, and cannot be ensured by a one-off set of reforms for accession. A comparison with peer Member States such as 1/4  BIS central bankers' speeches  Slovenia, Slovakia and neighbouring Baltic countries suggests that there is further scope for Latvia to catch up in terms of GDP per capita.
Reforms boosting productivity growth and investment in innovation are essential to sustain the high rates of wage growth currently seen in the economy – of close to 8% – and thus to prevent competitiveness losses in the future.