wiiw Forecast Reports

LATVIA: Faster recovery than expected, driven by release of pent up demand


Sebastian Leitner

in: Recovery Beating Expectations
wiiw Forecast Report No. Autumn 2021, October 2021 , pp. 73-76

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Following a relatively mild recession in 2020, the Latvian economy is experiencing a remarkably strong revival in 2021. Household consumption has recouped most of the 10% loss it experienced last year, while enterprises are replenishing their depleted stocks. Public consumption and investment are acting as a growth driver, and external demand has similarly rebounded. In 2021, we expect GDP growth to increase to 4.5% and to remain strong in 2022 (4.3%). That will be followed by a somewhat gentler increase of 3.4% in 2023.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Latvia