Latvia's economic struggles have a name - Krišjānis Kariņš

On Monday, the Central Statistical Bureau published Latvia's GDP indicators for the first quarter of 2021, which were quite depressing. According to seasonal- and calendar-unadjusted data, GDP in the first quarter of this year has decreased by 1.3%, compared to the first quarter of 2020.

This seemingly small reduction in GDP can easily be misleading - after all, there is a pandemic and the associated restrictions. So we have to look at the dynamics of this GDP compared to our neighbors, who suffered similarly from Covid-19. And it creates a pretty bleak picture.

Lithuania's GDP grew by 1% in the first quarter of this year (according to the quick estimate), while Estonia's GDP even grew by 5.4%. But that would also be nothing. Quarterly fluctuations do not really mean anything yet, and it was previously estimated that the decline will be even greater. The worst part is something else. Latvia's GDP growth has been lagging behind its neighbors for more than two years, and this lag somehow coincides with the period when the government has been headed by Krišjānis Kariņš.

If a person lives in a certain social bubble, then he can be truly and earnestly convinced that Kariņš is the best prime minister Latvia has ever had. Tall, likable, smiling, open, kind-hearted, gives interviews to the world's leading media in fluent English. In short, a person whom we don't feel ashamed about, but ashamed, as we all know, is the most characteristic Latvian national feeling.

Everything would be great, but Kariņš is not only the face of our country, its outward signboard, but also the head of state. The Prime Minister, as written in the Constitution. The functionality and development of our country depends on his more successful or less successful operation. The success of these things is not so easy to determine, because what seems good to some is bad to others. What is development for some, for others is lagging behind. I am absolutely convinced that many readers of this article, seeing the title, thought to themselves - the author wants to criticize our prime minister because he just does not like him.

I have no personal dislike for Kariņš. On the contrary. I have met him more than once and for the last fifteen years, all our meetings have always been quite nice and pleasant. However, the main reason why I can't look at Kariņš with the same enthusiasm as the members of his fan club is the objective economic indicators. It just seems that the pandemic has saved Kariņš's government because under its cover the government has largely managed to disguise its economic inaction.

In social networks, discussing this chart published by economist Āboliņš, people invent various reasons for why Latvia is lagging behind: high share of aviation, transit, severe trade restrictions, but in fact they are all a search for excuses to remove the main culprit from the reprimand zone - Krišjānis Kariņš. Unfortunately, these are the objective facts, whatever our attitude towards Kariņš himself.

However, the figures and percentages that are not flattering to the Latvian economy and government competence are only an abstraction. They are much more convincingly reflected in real life. I was in Old Riga on Sunday. Sunny, pleasant weather. Neither hot nor cold. One would think that after the eateries were allowed to open the terraces, they would jump at the chance and expand widely? Not even close. The economic downturn is visible to the naked eye. Yes, in many places these terraces have been created, but just as many previously popular places have closed. They will probably reopen at some point, possibly with new owners, but it is clear that the economic activities have been hit hard.

The most unpleasant thing about this story is that by regularly listening to Kariņš's speeches at press conferences, a clear conviction crystallized - for this person, the economy is a total abstraction, which he does not understand and, most importantly, does not feel. The economic issues obviously do not interest Kariņš, just as the people of Latvia don't care about the Super Bowl. The only difference is that the development of our country and the well-being of the people depends on the interest or disinterest of the Prime Minister.

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