Analytics, Economics, Estonia, EU – Baltic States, Investments, Markets and Companies

The European Commission predicts that Latvia's gross domestic product (GDP) will increase by 3.8% in 2013 and by 4.1% in 2014.

The European Commission continues to believe that Latvia will once again register the fastest growth in the European Union this year and next.

Meanwhile, the European Commission projects that Lithuania will see 3.1% growth in GDP this year, and 3.6% growth in 2014.

At the same time, Latvia's unemployment level is expected to reduce to 13.7% by the end of this year, and to 12.2 percent by the end of next year.

Furthermore, the European Commission also projects Latvia's inflation rate at 1.4% this year, and 2.1% next year.

The Commission states that Estonia's exports will start motoring the economy again from the middle of this year. This is supported by the better state of economies of Russia and Nordic states. Thanks to export growth the companies' possibilities of investing will grow, compensating the decrease of public sector investments as projects conducted from pollution quota sales proceeds end.

Harmonised consumer price growth slows down to 3.6% this year and to 3.1% next year.

The government sector budget in Estonia is near balance this year, as a deficit of 0.3% is forecast but next year there should be a surplus of 0.2%.