Analytics, Economics, EU – Baltic States, Financial Services, GDP, Inflation

International Internet Magazine. Baltic States news & analytics Tuesday, 21.08.2018, 01:09

IMF ups Latvia's economic growth forecast for 2017 and 2018

BC, Riga, 11.10.2017.Print version
The International Monetary Fund (IMF) has revised upwards Latvia’s GDP growth forecast for the years 2017 and 2018, reports LETA.

According to its latest World Economic Outlook, which the IMF released today, the Latvian economy is projected to grow by 3.8% this year and 3.9% next year.

In its spring forecast, released in April, the IMF predicted Latvia’s GDP growth for 2017 at 3% and for 2018 at 3.3%.

Latvia’s inflation rate has been projected at 3% this year. According to the IMF’s estimates, unemployment will decline to 9% this year and 8.7% next year from 9.6% last year while Latvia’s current account deficit will reach 0.3% of GDP this year and will widen to 1.5% of GDP next year.

The IMF also expects Estonia to show the strongest economic growth among the three Baltic states this year, with Estonia’s GDP likely to expand by 4% in 2017 and 3.7% in 2018. As compared to its April forecasts, Estonia’s growth forecast has been raised from 2.5% and 2.8% respectively. Estonian inflation is projected at 3.8% in 2017 and 3.4% in 2018, and Estonia’s current account is expected to accumulate a surplus of 1.8% of GDP, which next year will contract to 1.4% of GDP. Estonian unemployment, meanwhile, is set to rise to 8.6% this year and 9% next year from last year’s 6.8%.

The Lithuanian economy, meanwhile, is expected to show 3.5% growth this and also next year. Lithuania’s economic growth forecast has been raised from 2.8% for this year and 3.1% for next year. Lithuania’s inflation rate is projected at 2.8% this year and 2% next year. Lithuania’s current account deficit is expected to reach 1.6% of GDP this year and 1.5% of GDP next year. According to IMF estimates, Lithuanian unemployment will drop to 7.4% this year and 7.2% next year from this year’s 7.9%.

The eurozone’s GDP is projected to grow by 2.1% this year and 1.9% next year.

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