wiiw Forecast Reports
LATVIA: After the slump, heading for a well-shaped recovery
in: No Quick Recovery in Sight, with Coronavirus Risks Looming Large
wiiw Forecast Report No. Autumn 2020, November 2020 , pp. 77-80
The Latvian economy has experienced a sharp decline, but seems to have bounced back quite quickly in the third quarter of 2020. Household consumption fell by more than 20% in the second quarter, but more recently has picked up again. The decline in external demand was much less than expected. Similarly, gross fixed capital investment fell only slightly, but is likely to be depressed in the second half of the year. In 2020, we expect GDP to shrink by 4.6%; this will be followed by strong growth of 4.4% in 2021 and a somewhat slower upswing of 2.8% in 2022.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Latvia