Latvia's GDP forecast for this year is better than EU average - Dombrovskis

  • 2020-07-07
  • LETA/TBT Staff

RIGA - The forecast of the dynamic of Latvia's gross domestic product (GDP) for this and next year is better than the forecast for the European Union's (EU) economy, the European Commission's Executive Vice President Valdis Dombrovskis told LETA. 

Informing about the European Commission's Summer 2020 Economic Forecast, Dombrovskis said that the forecast for the Latvian economy remains unchanged from the spring forecast, anticipating a 7 percent contraction of Latvia's GDP this year and a 6.4 percent increase in 2021. 

Dombrovskis added that Latvia's GDP forecast for this and next year is better than the forecast for the EU and the euro area. The EU economy is expected to see an 8.3 percent recession this year and a 5.8 percent growth next year.  

Meanwhile, the European Commission's forecast for Latvia's neighbor countries has been changed - Lithuania's GDP forecast for this year has been upgraded from a 7.9 percent downturn in the spring forecast to a 7.1 percent reduction in the summer forecast.

Estonia's GDP forecast for this year has been revised downwards - from 6.9 percent reduction in the spring forecast to a 7.7 percent slump in the summer forecast. 

"The European Commission expects a recovery of the European economy in the second half of this year, but the overall dynamic of the economy will depend on how successfully the Covid-19 pandemic is overcome and how fast member states can lift their restrictions," Dombrovskis said. 

Commenting on economic forecasts for 2021, the EU commissioner said that it is essential to reach an EU-wide agreement on Europe's recovery plan as soon as possible.