Latvia's central bank revises up GDP forecast for 2020
Source: Xinhua | 2020-09-30
The Bank of Latvia, the central bank, on Tuesday revised up the forecast for the Baltic country's gross domestic product (GDP) for this year.
Latvia's GDP will drop by 4.7 percent in 2020 instead of the 7.5 percent estimated in June, according to the bank.
But it revised down the forecast for 2021 to a growth of 5.1 percent from 6.7 percent projected three months ago.
For 2022, the economic growth forecast remains unchanged at 5 percent.
The steepest decline caused by the COVID-19 pandemic has been overcome and the economic sentiment is improving, the central bank's Governor Martins Kazaks told a news conference.
"There are no signs that a sharp downturn could be coming," said Kazaks.
He also noted that it is of great importance how money from the state budget and European Union funds would be spent to foster economic recovery.
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