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The bank has raised its forecast for the country’s economic growth this year from the previously forecast 3.1 percent. up to 4 percent. and, if this forecast is confirmed, economic growth will be the lowest in the Baltic countries.
Latvia’s GDP growth forecast for 2022 has been lowered from 5.5% to 5%, but if this forecast is confirmed, it will be the largest of the Baltic countries, according to the latest Swedbank economic review.
In 2023, 3.5 percent is projected in Latvia. growth rate, which would also be the fastest in the Baltic states.
Swedbank Latvia chief economist Liva Zorgenfreija said the economy was recovering unexpectedly fast.
“Although several sectors are still in crisis, the overall Latvian economy has returned to pre-crisis levels in the second quarter. In our partner countries, the recovery is also rapid,” he noted.
“Although the risk of new virus waves remains high, especially in Latvia, where the proportion of vaccinated is extremely low, farms have already adapted and a further decline in GDP is not expected by the end of the year. Given the pace of In the recovery, Latvia’s GDP growth forecast has been raised to 4 percent this year. Next year, growth will accelerate slightly to 5 percent, and in 2023 the pace will slow a little to 3.5 % ”, Added L. Zorgenfreija.
Swedbank has also slightly increased its forecast for average annual inflation in Latvia this year, from 1.8 percent to 2.3 percent in April. Next year, the bank estimates that inflation in the country will be 3.2 percent, instead of the 3 percent previously forecast. And by 2023, average annual inflation is expected to drop to 3 percent.
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