Latvia is currently experiencing the second wave of the Covid-19 pandemic, and this is also reflected in economic indicators.
Meanwhile, even the third wave of the virus has been observed elsewhere in the world, which is severely affecting the economies of these countries due to the restrictions on the spread of the disease, but it is gratifying to note that The restrictions have been relatively short-lived, so the Baltics are not experiencing such an economic downturn as the United States and Europe.
Various solutions are being sought around the world to stimulate the economy. These include both the European Central Bank’s monetary stimulus policy and the Recovery and Resiliance Facility developed by the European Commission. Both policies cover a broad set of economic stimulus packages. In this context, the active involvement of both governments and central banks is particularly important in order to minimize the impact on the world economy.
The development of an effective vaccine is also very important in overcoming the crisis. It is reported that the US pharmaceutical giant Pfizer and German companies BioNTech The co-developed vaccine against the new coronavir in the third phase of trials has shown 95% efficacy against Covid-19 infection. The development of other vaccines also raises hopes that we will be able to successfully overcome the Covid-19 crisis and that business will return to normal. This is also the hope on the world’s major stock exchanges, where stock price indices have risen sharply following the spread of this positive news about the effectiveness of the Covid-19 vaccine.
Among the many sectors of the economy, the negative effects of the pandemic on the energy industry have been much smaller. The total Baltic electricity consumption in 9 months of 2020 decreased by 3.3% compared to the corresponding period last year. This once again confirms that electricity is very important and without it economic development is not possible. Every customer must be praised here!
To reduce the economic impact of the pandemic, the European Commission has identified the Green Course as one of the tools to help revitalize the economy and get out of the crisis faster. We are already seeing how customer thinking in Latvia and the Baltics has changed. Our customers are increasingly looking for ways to generate their own electricity and provide their homes with green energy. This is also confirmed by the market demand for Elektrum Solar product. We also expect changes in the direction of e-mobility and an increase in the popularity of electric cars, therefore we are actively creating an electric car charging network.
In addition, we also want to invest in green investment projects, as evidenced by Latvenergo’s planned green bond program. In accordance with the strategic goals of the Latvenergo Group, all funds raised under the bond program will be invested in the implementation of environmentally friendly investment projects.
I wish every client strong health!
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