IMF: Latvia’s economy to grow most among the Baltic States this year
Lithuania’s 2017 economic development will be faster than in 2016, however, will be behind the gross domestic product (GDP) growth projected for Latvia, the International Monetary Fund (IMF) said. Estonia should report the slowest economic growth this year.
After rising by 2.3 per cent last year, Lithuania’s GDP should increase by 2.8 per cent this year and by another 3.1 per cent in 2018. The relevant forecasts for Latvia are 3 per cent and 3.3 per cent and for Estonia – 2.5 per cent and 2.8 per cent, the IMF said in its latest forecasts on Tuesday
Economic growth in the Euro area, which Lithuania is part of, should reach 1.7 per cent this year and 1.6 per cent in 2018, the IMF said.
Lithuania’s average annual inflation should stand at 2.8 per cent in 2017 and 2 per cent next year, as compared with 2.8 per cent and 2.5 per cent in Latvia and 3.2 per cent and 2.5 per cent in Estonia, respectively. According to IMF forecasts, Lithuania’s unemployment rate should stand at 7.4 per cent this year and at 7.2 per cent next year, while Latvia’s figures should be 9.4 per cent and 9.2 per cent and Estonia’s jobless rate should be 8.3 per cent and 8.9 per cent, respectively.
The current account deficit of Lithuania should be 1.6 per cent of the GDP this year and 1.5 per cent in 2018.