The economy contracted in 2020. The COVID-19 pandemic was the main reason for the negative impact on economic conditions. Real gross domestic product (GDP) declined. Fiscal conditions improved while the debt-to-GDP ratio remained very low. In the financial sector, credit quality was relatively unchanged, and commercial bank lending to the private sector grew. On the external side, the trade deficit narrowed.

Conditions are projected to improve in the short run. Risks to the outlook are however tilted heavily to the downside, particularly considering the ongoing COVID-19 challenges.