The International Monetary Fund (IMF) has revised Latvia's gross domestic product projection for this year, and now expects Latvia to post steepest economic downturn in the Baltics in 2020, while next year Latvia is projected to achieve the fastest economic growth in the Baltic countries.

The IMF's latest World Economic Outlook predicts that the Latvian economy will contract by 8.6 percent this year, instead of growing by 2.8 percent as the IMF estimated last October. Next year, the IMF projects Latvia's GDP growth at 8.3 percent, which will be the fastest among the Baltic countries.

The IMF also expects consumer prices in Latvia to decrease this year, that is, Latvia will record 0.3 percent deflation, while next year inflation will return and reach 3 percent.

According to the IMF projections, unemployment in Latvia will reach 8 percent by the end of 2020 and decrease to 6.3 percent next year, returning to the 2019 level.

The IMF also believes that Latvia's current account deficit will expand to 2.2 percent of GDP this year, but decrease to 1.5 percent of GDP in 2021.

(Source: World Economic Outlook)