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Moody's has affirmed Latvia's credit rating at A3 with a stable outlook, indicating strong investor confidence in the country's fiscal management, according to Prime Minister Evika Siliņa. The stable outlook considers heightened geopolitical risks, which are somewhat alleviated by NATO membership. Moody's projects Latvia's GDP growth at 1.7% for 2025 and 2.4% for 2026, while government debt is expected to rise from 46.6% of GDP in 2024 to 49.6% by 2026 due to increased defense spending.