European Bank for Reconstruction and Development (EBRD) has maintained Latvia’s GDP outlook for 2021 unchanged. The country’s economic growth is expected to be the most rapid among the Baltic States.
The bank’s latest outlook estimates Latvia’s economic growth to reach 3.5% this year.
Commenting on this year’s outlook, EBRD notes that the slow speed of the vaccination campaign creates risks for the outlook because the measures in place to limit the spread of the coronavirus may have to remain in force for longer. Meanwhile, thanks to increased external demand, the export industry may recovery recover more quickly than household consumption. Investments should increase alongside economic confidence.
For next year EBRD predicts GDP growth of 5.5% in Latvia.
Compared to previous outlooks, which were published in September 2020, Estonia’s economic growth outlook for 2021 has been reduced by 1%. Now EBRD expects Estonia’s GDP growth to reach 3% this year. For next year, the bank expects Estonia’s economy to grow 4.5%.
Lithuania’s GDP outlook for 2021 has been downgraded by 1%, to 3%. For next year, the country’s economic growth is estimated at 4%.
At the same time, EBRD has increased the economic growth outlook for countries of the region by 0.6%, to 4.2% this year and 3.9% in 2022.
EBRD explains the correction of this year’s outlook with progressing vaccination activities, which help improve the epidemiological situation and ease the measures in place to halt the spread of the virus. (BNN/Business World Magazine)