Ilustratīvs attēls
During a recent Executive Education course at SSE Riga I had this interesting question: What is the difference between a recession and an economic crisis? The former is typically defined as a decrease in GDP for at least two quarters in a row – this puts Estonia and Lithuania into this category, see Figure 1. The Lithuanian economy has been contracting for the past two quarters whereas Estonia’s recession so far has lasted a year.
Latvia’s economy is still reporting growth albeit at very low rates (perhaps RailBaltica made the difference between Latvia and its two Baltic neighbours?); in 2023 Q1 the economy essentially was at a standstill.
An economic crisis does not have a similarly clear definition – this one, for instance, is not very helpful – what exactly is a “significant deterioration of the economy”???
