The expected economic recovery came unexpectedly fast. Although several sectors are still in crisis, the latvian economy as a whole already exceeded the Professional Person and industry Email List pre-crisis level in the second quarter of the year. The recovery is also strong in our partner countries. Recurrence of the virus remain, especially in latvia, where vaccination coverage is extremely low, economies have adapted and a new fall in gross domestic product (gdp) is not expected at the Professional Person and industry Email List end of the year. The pace of recovery calls for a revision of latvia's gdp forecast upwards of up to 4% this year. Next year we will grow even faster - by 5%, but in 2023 the pace will slow down a bit, but growth will remain well above potential and will reach 3.5%.
The world economy is growing, but not without obstacles during this summer, the gdp of all nordic and baltic economies has already risen above the Professional Person and industry Email List end-2019 reading. Although the euro area is still lagging behind pre-crisis levels, positive surprises in almost all european countries have led to Professional Person and industry Email List a more optimistic outlook for this year. However, faster growth in both europe and the world is being and will be hampered by the bottleneck of the supply side - the lack of various components, long delivery times and high prices. Disruptions in the supply chain are exacerbated by virus outbreaks in developing countries such as china, where closed ports and factories in guangdong province are affecting not only chinese exports but global trade.
Vaccination coverage in europe, especially in the nordic countries, is wide, suggesting that outbreaks in the autumn and winter will not have a significant impact on the economy. Separately, possibly locally, growth can be hampered not only by a lack of raw materials or components, but also by insufficient human resources. The labor market in both the Professional Person and industry Email List nordic and baltic countries is recovering unexpectedly. Although pre-crisis levels, such as unemployment, have not yet been reached, business concerns Professional Person and industry Email List about labor shortages are rising sharply. Among the sectors, this issue is particularly relevant in the wake of the covid crisis in manufacturing and also in construction.