Baltics weathered the pandemic crisis well

2020 proved better than expected in the Baltics, as FY20 GDP growth beat growth forecasts quite markedly as Lithuanian GDP contracted by ‘just’ -0.9%, while Latvian by -3.5%. But the start to 2021 does not look as favorable, as restrictions are weighing on activity and a more visible rebound is expected only toward the second half of the year. According to the European Commission’s Winter forecast, FY21 GDP growth is expected to land at 2.6% in Estonia, 3.5% in Latvia and 2.2% in Lithuania.