Posts tagged as GDP

Pandemic borrowing pushes Lithuania’s deficit to 8–9 percent of GDP

Thursday, October 8, 2020

Lithuania’s budget deficit will reach 8–9 percent of GDP this year due to increased borrowing during the pandemic, an adviser to the country’s president said on Thursday. The budget deficit was justified during the Covid-19 crisis due to the need to absorb shocks to the economy and retain jobs, Simonas Krėpšta, adviser to President Gitanas Nausėda, told LRT RADIO. In spring, the Lithuanian government upped the state’s borrowing limit to…

Estonian Central Bank: If COVID-19 regime stays same, GDP to fall 4 percent in 2020

Tuesday, September 29, 2020

The Estonian economy is expected to contract by 4 percent in 2020, to be followed by a growth of 0.2 percent in 2021, the Bank of Estonia says. This forecast assumes that any coronavirus restrictions remain less strict than they had been in spring, the bank adds, meaning there is plenty of uncertainty about the prognosis, with the contraction possibly being as low as 2 percent and as high as…

Lithuania’s GDP dip among smallest in Europe

Monday, September 28, 2020

Even though Lithuania will likely finish the year with a drop in its annual GDP, the contraction is among the smallest in Europe, according to the chief of the country’s central bank. “The result of the first half-year period is a contraction of 0.8 percent. […] That is certainly a better result than we predicted when everything began,” Vitas Vasiliauskas, the governor of the Bank of Lithuania, told reporters on…

Economist: excise duty must be raised carefully in Latvia

Monday, September 28, 2020

Excise duty should be increased carefully in order not to increase the amount of smuggling, said economist, researcher Arnis Sauka, in an interview to Latvian Radio September 28. On Monday, September 28, a study on excise tax policy in the Baltic States was presented. Sauka said that excise duty in the Baltic States has a significant impact on GDP. “One of the conclusions to remove incentives for carrying out cross-border trade…

Latvian GDP fell 8.9% in second quarter

Monday, August 31, 2020

Data compiled by the Central Statistical Bureau (CSB) and released August 31 show that in the second quarter of 2020, compared to the second quarter of 2019, gross domestic product (GDP) decreased by 8.9 % (according to seasonally and calendar non-adjusted data). In the first half of the year GDP fell by 5.4 %. With the the first quarter of the year also recording negative growth (-1.5%), the country is now officially in recession (the classic definition of…

Latvia’s GDP reduction in 2020 could be at 7%

Wednesday, August 19, 2020

In 2020, Latvia’s gross domestic product (GDP) could decrease by 7%, but in the case of a Covid-19 “second wave” – by 9%, according to a macroeconomic development scenario prepared by the Ministry of Finance (MoF) which was presented to the government on Tuesday. The mentioned macroeconomic development scenario will be the basis for the national budget for 2021 and the medium-term budget framework for 2021-2023. In the baseline scenario,…

LRT English Newsletter: Mask up, again

By Justinas Šuliokas on Friday, July 31, 2020

With over 100 new coronavirus infections confirmed over the past week, there is a palpable sense that the pandemic might be resurging. Lithuania’s health minister, who leads the country’s Covid-19 response, has even agreed to cut his five-week holidays (to four) and check in every Friday. Meanwhile the members of the cabinet who are not on a break  decided to bring back mandatory facemasks  . As of Saturday, one must…

Moody’s: Latvia’s GDP to shrink by 7.3%

Thursday, July 2, 2020

Latvia’s gross domestic product (GDP) will fall by 7.3% this year, while the economy will grow by 4.7% next year, predicted international rating agency Moody’s Investors Service, Inc. (Moody’s) on July 1. According to Moody’s, the Latvian credit rating, set at A3 level, is supported by three key factors – the flexible and relatively diversified Latvian economy, the moderate level of Latvian government debt and effective policy making. The Agency…

Latvia will see a 7.3% GDP reduction in 2020

Wednesday, July 1, 2020

Latvia’s GDP will see a reduction of 7.3% this year, but next year economic growth will reach 4.7%, the international ratings agency Moody’s Investor Service, Inc (Moody’s) points out. The credit profile of Latvia (A3 stable) is supported by the country’s flexible and relatively diversified economy, moderate government debt relative to GDP and a record of effective policymaking, Moody’s said in an annual report released today. The coronavirus crisis will lead to…

Revised Bank of Latvia forecast says GDP to shrink 7.5% in 2020

Friday, June 5, 2020

The Bank of Latvia has revised its economic forecast. It now predicts GDP will shrink in 2020 by 7.5% (from the March prediction of 6.5%) and inflation will be at 0% (down from predicted 0.5% in March). The institution predicts the economy to grow 6.7% in 2021 and inflation to be at 0.2%, the Bank of Latvia told the press June 5. The new forecasts reflect the impact of the…