Analysis of public debt trends in Latvia

In recent years, the size of public debt has increased significantly in Latvia and the European Union. However, a huge level of public debt negatively affects economic development - both at the regional and state levels. Moreover, increased interest rates increase the financial burden on the state budget. Therefore, one of the goals of the EU financial policy will be to stabilize public debt in the coming years. The purpose of the work is to analyse trends in changes in public debt and identify the main factors influencing the growth of public debt. Using the Domar model, the author will develop the main scenarios for changes in public debt. The risks that public debt poses to the economy will also be assessed.