Send a Tweet
Most Popular Choices
Share on Facebook 18 Share on Twitter Printer Friendly Page More Sharing
Exclusive to OpEdNews:
General News   

Baltic countries are on the verge of state bankruptcy

By       (Page 1 of 1 pages) (View How Many People Read This)   1 comment
Author 511249
Message Lukas Ramonas

The coronavirus pandemic spreads throughout the world. And its victims are not only people, but also the economies of states.

As it is known, the number of patients diagnosed with COVID-19 daily increases by 100-130 people in the Baltic countries. At the same time, the International Monetary Fund has predicted GDP decline in these states.

According to the IMF forecast, the biggest recession is expected in Latvia. The fund forecasts GDP growth for Latvia by 8.3% in 2021 (it was 8.6% in 2020). By the way, the growth of 2.8% was projected for Latvia before the economic crisis.

Lithuania awaits the second largest economic downturn among the Baltic republics. It will be 8.1% in 2020, and the IMF predicts an increase of 8.2% in 2021. Before the crisis, an economic growth of 2.7% was projected.

The highest unemployment rate in the Baltics is expected in Lithuania it will rise up to 8.9% (8% in Latvia).

In other words, the situation in the Baltic countries is close to an economic catastrophe. Trying to escape this situation, Lithuania has borrowed a record amount of 2 billion euro in international markets. The Ministry of Finance called the loan as a part of the financial strategy of the state. However, such measures prove a desperate situation.

The fact is that the Baltic States are focused exclusively on the European Union now. But the money allocated by the European Union to save the Baltics is not enough. At the same time, new negotiations to help the most affected by crisis EU member states fail and cause serious conflicts within the community.

Against this background, wrong strategy chosen once by the governments of the Baltic countries in foreign and domestic politics is clearly visible. Destroying all ties with Russia and constantly advocating for tightening of economic sanctions, Lithuania and Latvia put themselves in a difficult situation.

It is no secret that the Baltic countries had "to pay" for membership in the European Union by destroying their own industry and the banking system.

Now, the leading countries of the European Union are thinking about themselves in the context of the economic crisis. At the same time, the opportunity to be the East-West transport link was lost due to the aggressive anti-Russian position of the Baltic authorities.

At the end, the authorities of the Baltic countries relied solely on the European Union. However, the global economic crisis caused by the spread of coronavirus has shown that every man for himself while in trouble.

Unfortunately, it is too late for Vilnius, Tallinn, and Riga to realize that interaction both with the West and the East would be especially beneficial. And now the Baltic countries are on the verge of actual state bankruptcy.

 

Rate It | View Ratings

Lukas Ramonas Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Interested in Politics, economics, The Baltics and sport

Related Topic(s): , Add Tags
Add to My Group(s)
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

What threatens Lithuania in 2019

Doctors and firefighters take to the streets in the Baltics

NATO uses snake to defeat Russia

New Era of Anti-Russian Policy Begins In EU

Dressed in NATO uniform criminals operate in the Baltic States

Russia has a problem in the Baltics

To View Comments or Join the Conversation: