RIGA, Lativa: Latvian Prime Minister Valdis Dombrovskis showing an euro banknote after withdrawing it from a local bank machine here on Wednesday. Latvia adopted the euro on the day, making the Baltic country the 18th member of the eurozone, as New Year\' RIGA, Jan 1 (Xinhua): After three years of economic struggle, Latvia successfully emerged from a severe recession and became the 18th member of the eurozone on Tuesday.
After joining the European Union in 2004, Latvia took some time joining the euro, with the Latvian government deciding in 2010 to enter the eurozone on Jan. 1, 2014.
It applied for eurozone membership in March 2013 and the European Union supported Latvia's application on the condition that it will curb its inflation and debt level.
Latvia's joining marks an easing of the debt-crisis pressure that has lasted for about five years.
There have been encouraging signs, particularly in recent months, that an economic recovery is underway in Europe. After contracting up until the first quarter of 2013, the European economy started to grow again in the following two quarters.
"Economic growth is expected to gradually gather pace over the forecast horizon to 1.4 per cent in the EU and 1.1 per cent in the euro area in 2014," said the 2013 autumn economic forecast of the European Commission.
In 2015, the economic growth of the EU and the eurozone is expected to further accelerate, reaching 1.9 per cent and 1.7 per cent, respectively.
"There are increasing signs that the European economy has reached a turning point," Vice President Olli Rehn said at a press conference in September.
Analysts believe that by joining the eurozone, Latvia will not only benefit from EU's sound ground for economic growth, but also see more convenience from external markets such as China, the US, Canada and Japan, which have mutual investment or free trade deal talks with the EU.
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