“We were supposed to be a V-shaped development. It means a relatively deep, quick fall and a very fast recovery. That would have happened, but now we see that the second region is overthrowing the second. [Ciovid-19] a wave with much larger magnitudes than we expected. Consequently, due to external factors, consumption and investment could be withheld again, as well as export volumes could be lower, “said Vilks.
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He pointed out that thus a “U” type development scenario could be observed in the development of the Latvian and also the entire Baltic economy, with the economy recovering in about two years. “The development model will not be V-shaped when we recover within a year, but will be U-shaped for all the Baltic States when we need about two years. This is still a relatively good scenario, as there will be regions where this recovery will take much longer. , “noted Wolf.
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He also noted that Latvia has been very fiscally responsible after the last crisis and was too cautious in spending in this crisis. “The direction is right, but the amounts are not correct. (…) Latvia directed a relatively smaller part of the available money to entrepreneurs and residents, overcoming the consequences of the crisis. There could have been larger amounts – at least twice their amount could be multiplied,” said Vilks.
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He mentioned that in general Latvia is moving in the right direction, but the question is about the amount of support and the speed of their granting. “Latvia’s problems are slow. Latvia’s problems are indecisiveness. This has been told to me by colleagues from many countries. We have very good ideas, smart people, but we are upset,” said Wolf.
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It has already been reported that on October 1, the Saeima appointed Vilks as a member of the Council of the Bank of Latvia. Vilks will join the Council of the Bank of Latvia on November 16.
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