Original publication available at the China-CEE Institute website.
The last year 2020 the world has faced a severe challenge that hit every country. It was not possible to forecast such a widespread Covid-19 and all the consequences it brought as it is never possible to predict something uncontrollable by its nature. However, Latvia is fighting the virus as the whole world does, and it is needed to make a prognosis regarding the future of the country’s economy in the nearest future. 2021 is going to be a year of recovery after Covid-19 crisis. However, the first half of the year is going to be under restrictive measures, so the improvement of the economic situation is more likely to happen in the second half of 2021.
In general, the Latvian economy suffered less other European countries as measures taken by the government were less strict and friendlier for the maintenance of the economy. Nonetheless, as a result of the pandemic, several significant issues need to be fixed in 2021: vaccination schedule, export recovery, reduction of unemployment, an increase of the consumption among the population, decrement of the government deficit and as a result debt ratio. Besides, the introduction of the mandatory minimum state social insurance contribution rate may negatively impact the Latvian economy in 2021.
There is great hope for 2021 not only from the economic point of view but regarding every aspect of the life of society.
Full publication can be found here.
*This article has been made in cooperation with China-CEE institute and is the intellectual property of China-CEE institute