Of latvia and will affect all sectors of the economy. The virus shock will significantly drag down the latvian economy. The decline in global activity, at least in the short term, will be more severe than during the financial crisis, and we. As a small, open economy, will feel such fluctuations painfully. Līva zorgenfreija, swedbank’s chief economist in. Latvia, explains how this will affect the near future and what is happening in the long run. A global recession is. Expected, followed by a rapid recoverin developing the forecast scenario, we relied on the assumption that. Developments in western countries would be similar to those in china and south korea.
In Other Words, the Measures Put in Place by the
Governments will be effective, the virus will be halted in a few months’ time, and extensive support for businesses. And citizens will also help alleviate the effects of the crisis and weather the recession. The hottest point of the crisis. Will be in the first half of this year: more in china in the France Phone Number first quarter and in the rest of the world in the second. Quarter. Overall, the global economy will shrink by around 2% in 2020, a deeper downturn than during the financial crisis. The measures announced by governments and central banks already far exceed those adopted during the. Financial crisis. This will ensure a speedy recovery of the world economy. We forecast that global growth in 2021. Could be very rapid – around 6%.
The Latvian Economy Will Suffer the Most
In the second quarter the operation is hampered by virus control measures, disruptions in supply chains, and a drop. In demand for the products or services offered. Some companies suffer immediately and severely, others after. A while, and perhaps more easily, but some companies are experiencing rising demand. However, these. Beneficiaries will also have to reckon with the risks posed by the virus to the company’s operations – employees may. Not be able to perform their duties due to self-isolation, caring for children or the sick at home, or being ill.