The economist warned about the consequences.
Gradually, discussions are unfolding in Latvia about whether we should follow in the footsteps of our Baltic neighbors and allow residents to partially withdraw their savings from the second pension level. Economist Janis Oshlejs noted one of the extremely negative consequences for the economy in the event of such a decision on social media platform X:
"Latvia exports fewer goods and services than it imports. To cover the difference, we borrow from abroad. With the payouts from the second pension level, import consumption will increase, and consequently, the external debt to cover imports will rise.
Yes, that’s why supposedly each of us 'has' second-level pension money, but with the immediate payout of second-level pension funds, there will be no money for import expenditures, and we will have to borrow again. Don't we already have enough debt as it is?"
