Third largest economy in the EU, with the emission of more than 800 gm of carbon dioxide per euro of GDP, where coal dominates the energy sector, with a 77% share in electricity production.
The 500+ policy seems to have had the political effects desired by the government, rather than solving economic and demographic issues.
Despite the employment rate among 15- to 64-year-olds at 75.2%, the country faces a shrinking workforce and regional disparities.
Unemployment has risen: consumption and investment face a higher level of uncertainty and a decline in capacity utilization induced by lower demand.
Private consumption will remain strong thanks to rising incomes, pension indexation, higher minimum wages and a vibrant labour market.
Latvian GDP growth fell by -9.2% and the current account deficit is on the rise. Loans to the private sector are held back by an extensive informal sector.
Tallinn’s GDP will fall by 4.5%, while in 2021-22 will recover with the rebound in private consumption and investment. Public debt remains the lowest in the EU.
Before the pandemic outbreak, the economy was expected to slow down slightly (+3%), with a decrease in exports and investments.