Analytics, EU – Baltic States, Inflation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:22

IMF predicts world's highest deflation for Latvia in 2010 – 3.7%

Nina Kolyako, BC, Riga, 05.05.2010.Print version
Consumer prices in Latvia will be on average 3.7% lower in 2010 than previous year, the largest drop among 183 countries worldwide, according to the International Monetary Fund's (IMF) new "World Economic Outlook" report. Deflation in Lithuania will make 1.2%, and inflation in Estonia will be 0.8%.

The IMF predicts overall deflation for five other countries this year – 2% in Ireland, 1.4% in Japan, 1.2% in Lithuania, 0.6% in Montenegro, and 0.2% in Samoa.

 

Meanwhile, the highest inflation is expected for Venezuela – 29.7%, the Democratic Republic of the Congo – 26.2%, and Eritrea – 20.5%.

 

The average inflation rate for the U.S. this year will be 2.1%, and for the eurozone – 1.1%, lagging behind the target rate set by the European Central Bank, which is a little under 2%.

 

According to IMF's forecasts, Latvia's average deflation rate will drop to 2.5% in 2011, and prices will begin to rise again in 2012.

 

Consumer prices in Estonia will increase by 0.8% this year, by 1.1% in 2011, and by 1.3% in 2012. Meanwhile, Lithuania is expected to see a drop in prices of 1.2% this year, followed by a drop of 1.1% in 2012, and a rise of 0.1% in 2012.

 

The IMF's new biannual report predicts a drop of 4% in Latvia's gross domestic product this year, which is the same as that predicted in the previous report in October last year.

 

Only earthquake-struck Haiti is predicted to see a higher drop in GDP, where it could reach 8.2%.






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