Fiscal policies responded vigorously and more or less simultaneously across the world, with measures to support households and firms. This included, to varying degrees, debt moratoria, loan guarantees, direct grants to firms, income support, and more. A third actor, namely banking regulation and supervision, also played a key role.
Amidst somewhat weak economic activity in the external sector and downward adjustments of global economic growth projections for 2003, Latvia continues to report economic growth that is largely driven by domestic demand. The performance of the Latvian economy has also been recognized internationally: in November, the rating agency Moody's Investors Service upgraded Latvia's credit rating.