On December 1, the Organization for Economic Cooperation and Development (OECD) published an outlook for Latvia’s GDP decline, reducing it to 4.3%.
In its June outlook OECD expected Latvia’s economic decline to be at 8.1%.
Economic growth outlook for 2021 is reduced from 6.3% to 2.4%. In 2022, OECD expects Latvia’s economy to grow by 4%.
In Latvia the coordinated consumer price index, according to OECD, will increase by 0.1% this year and by 0.4% next year. The unemployment level in Latvia, according to OECD estimates, will increase from 8.4% this year to 8.8% next year.
OECD notes that Latvia’s implemented fiscal policy has helped prevent a far steeper decline. Additionally, the strong fiscal position will provide opportunities for the government to provide additional assistance to households and companies, if necessary.
For Lithuania OECD predicts a GDP decline of 2% this year and an economic growth of 2.7% next year. Previously the organization predicted an 8.1% decline this year and a 6.4% growth next year. OECD predicts a 1.2% consumer price increase this year and 1.5% next year. The outlook states that unemployment in Lithuania will be at 8.8% this year and 8.1% next year.
For Estonia OECD predicts the most rapid economic decline this year – 4.7%. Next year Estonia’s economy is expected to experience a 3.4% growth. In June, decline of 8.4% and growth of 4.3% respectively were expected for Estonia. This year Estonia is expected to experience a consumer price decline of 0.7% and 1.3% next year. Unemployment in Estonia, according to OECD estimates, will reach 6.8% this year and 7.6% next year. (BNN/Business World Magazine)