"Ever more draconian measures are taken to contain the virus and the economic fallout is increasing by the day, if not by the hour. The breakdown of supply chains is a negative supply shock to the economy while the lack of access to travel, restaurants, movie theaters etc etc is a massive negative demand shock. Both shocks reduce GDP and increase unemployment and very rapidly so."

Read further: https://ir.lv/2020/03/20/latvia-tough-times-ahead-but-the-country-looks-fiscally-well-prepared/

Morten Hansen regularly adds to the economic-political debate in Latvia through his columns at the independent Latvian magazine IR.