EBRD: Recovery to follow 6 percent contraction in Estonian economy in 2020

The EBRD has forecast a 6 percent contraction in the Estonian economy in 2020, but forecasts this to be replaced by an even larger recovery in 2021. Source: ERR

The European Bank for Reconstruction and Development (EBRD) has forecast a contraction of 6 percent in Estonia's economy for 2020, resulting from fallout of the coronavirus pandemic, but expects recovery in 2021, of 7 percent, Baltic News Service reports.

The EBRD announced on Wednesday that the coronavirus pandemic is projected to deal an extensive economic blow to the bank's investment area this year.

The EBRD drastically slashed its economic outlook for the 37 countries in its region on Wednesday, forecasting a contraction of 3.5 percent on average this year, but again with a recovery, of 4.8 percent next year.

In the case of Latvia and Lithuania, the EBRD forecast that the economies would shrink 7 percent in 2020, and then expand by 5 percent in 2021, BNS reports.

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Editor: Andrew Whyte

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