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

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.