Latvian economy unlikely to suffer losses from Brexit in near future: economist

Although Britain' s departure from the European Union (EU) is going to have a generally adverse effect on economic growth, Latvia is unlikely to suffer any serious losses from Brexit in the short term, Bank of Latvia economist Uldis Rutkaste said on public radio on Monday.

During the splitting-off process which could take about two years, there will be uncertainty about Britain's future and the global economy at large, the Latvian central bank's economist projected.

Brexit' s negative effects on the Latvian economy are not expected to be significant and might affect less than one percent of Latvia's GDP, Rutkaste said, noting the impact would be stronger if Britain decided to sever ties with the EU altogether.

Latvian Prime Minister Maris Kucinskis said in an interview with Latvian Television Monday morning that Latvia might be affected if Britain chose confrontation with the EU, which would cause the bloc to substantially reduce funding to its member states. Britain, however, is unlikely to take such a path and will instead seek a sensible solution, the Latvian prime minister said.

In a referendum in Britain last Thursday, 51.9 percent of voters supported Brexit, while 48.1 percent voted for remaining in the EU. Endit