Birth rates are declining, working people are leaving Latvia for abroad, and the number of pensioners in the country is growing - along with the national debt.
According to the Central Statistical Bureau, in 2024, there were 83,000 pensioners employed in Latvia, which accounts for about 10% of all workers. The largest number of elderly people work in agriculture, education, and healthcare, while in the information technology and finance sectors, their share is only 2%.
"Forecasts indicate that by 2060, nearly a third of Latvia's residents will be seniors," said Latvian Minister of Economics Viktor Valainis. The minister noted that the Latvian labor market is already experiencing a labor shortage, and this problem will only worsen in the future.
In turn, in the coming years, Latvia may face a worsening problem with healthcare financing, as the priority is the defense sector. Which is already being funded through increased external borrowing, and along with the growth of Latvia's national debt, the interest for servicing it is also increasing, which adds additional pressure on the budget.
Thus, the Fiscal Discipline Council (FDC) in its assessment of the state budget draft for 2026 prepared by the Ministry of Finance pointed out the growing burden of national debt and interest payments, which may limit the flexibility of the Latvian budget and jeopardize future fiscal sustainability after 2029.
