Swedbank: Latvian economy experiencing "broad-based slowdown"

Swedbank, the largest financial institution in the Baltic states, sounds a note of caution on the Latvian economy in its latest Economic Outlook, published November 7. 

"[The Latvian] economy has seen pronounced and broad-based slowdown this year. Domestic demand has softened on [a] fading boost from the EU funds, increased uncertainty and moderating purchasing power growth, while weakening growth in trade partner economies has weighed on exports. We have revised down 2019 growth forecast to 2.3%. Further domestic demand softness will drag the GDP growth down to 2% in 2020 before rebounding to 2.5% in 2021," the bank said.

In comparison, in Estonia Swedbank predicts that GDP growth will slow to 3.2% in this year and to 2.1% in 2020, and in Lithuania "expansion is expected to slow down substantially next year" from 3.7% this year to 2.0% next year.

The full report, with some interesting supporting charts, is available to read online.

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