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

The EC also predicted that Latvia's economy will grow by 3.5% next year and by 3.2% in 2019.

The EC predicts that Estonia's GDP will rise by 4.4% this, 3.2% next year, and 2.8% in 2019.

Meanwhile, Lithuania is expected to post 3.8% growth this year, 2.9% growth in 2018 and 2.6% growth in 2019, according to the European Commission.

The European Commission also projects that Latvia's inflation rate will be at 2.9% this year and at 2.8% next year, while unemployment will drop to 8.4% this year and to 7.9% in 2018.

Inflation in Estonia will be at 3.7% this year and three% next year, while the unemployment rate will rise from 6.9% this year to 7.7% next year, according to the European Commission.

Inflation in Lithuania will be at 3.8% this year and 2.9% next year, while the unemployment rate will drop from 7.3% this year to 6.8% next year, according to the European Commission.

European Commission Vice President Valdis Dombrovskis told LETA that Latvia's economic growth was stimulated by the revival of investment flows, as well as strong domestic and external demand. He explained that the increase in demand for the workforce has also led to a rapid increase in salaries, which will be at around 10% this year. Meanwhile, the budget deficit is planned at 1% of GDP.

Meanwhile, according to the EC's autumn economic report, the EU's overall growth will be at 2.3% this year, 2.1% next year and 1.9% in 2019, but the eurozone - 2.2%, 2.1% and 1.9%, respectively.

Furthermore, unemployment in the EU will drop to 7.8% this year and 7.3% in 2018, while unemployment in the eurozone is projected at 9.1% this year and 8.5% next year.