Ministry of Finance of Latvia prepared for fall by 7% and growth of public debt to 51.7% of GDP

The Ministry of Finance of Latvia has prepared a stabilization program for 2020 2023, which is based on the fall of GDP in 2020 by 7% and the growth of public debt to 51.7% of GDP, writes the portal LSM. The Ministry of Finance expects Latvia's GDP to grow by 1% and 2022 3.5% in 2021. However, in 2023 alone GDP will exceed 2019 Inflation in 2020 will be 0.4%, in 2021 1.7%. Unemployment at the end of 2020 will be 11.2%, an increase of 4.9%. By 2023, the number of workers is expected to stabilize by 883,000, with a total population of 1.9 million. The budget deficit is expected to be 9.4% of GDP, falling to 5% by 2021. The stabilization program prepared by the Ministry of Finance for 2020 2023 should be approved at the government meeting, and then by the European Commission before April 30. Earlier, according to Regnum IA, the IMF predicted an 8.6% fall in Latvia's GDP in 2020. From 13 March to 12 May, an Emergency Regime was introduced in the LR by a Government decision due to the Covid-19 pandemic. Classes in schools, sports sections have been abolished. Mass events are prohibited, which gather more than 50 people. The schedule of public transport and the rules of trade in stores have been changed. The borders of Latvia and other EU countries for passenger transport are closed. These measures have had a negative impact on the economic situation in the country.