OECD Economic Outlook, Volume 2020 Issue 2
The COVID-19 pandemic will cast a long shadow over the world’s economies and the economic outlook is very uncertain. This issue of the OECD Economic Outlook analyses the impacts of COVID-19 on the economy and puts forward projections for output, employment, prices, fiscal and current account balances.
This issue includes a general assessment of the macroeconomic situation, a series of notes on the current policy challenges related to the COVID-19 pandemic and a chapter summarising developments and providing projections for each individual country. Coverage is provided for all OECD members as well as for selected partner economies.
Latvia
GDP is set to contract by 4.3% in 2020, before growing by 2.4% in 2021 and 4.0% in 2022. Activity rose rapidly in the third quarter of 2020 after containment measures had been withdrawn. However, the recovery has been interrupted by the recent tightening of containment measures in response to a renewed virus outbreak, and is projected to resume at a slow rate when the restraints are relaxed. Private consumption will strengthen as household confidence and net disposable incomes increase. Investment will also gradually regain momentum. The labour market has been quite resilient. However, unemployment will remain elevated in 2021 due to a slow recovery in labour-intensive sectors.
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