EBRD expects Latvia to have the most rapid economic growth among Baltics
European Bank for Reconstruction and Development has upgraded Latvia’s GDP growth outlook for 2018. The Bank expects state economic growth in Latvia to be the most rapid in Baltic States.
The latest outlook for Latvia’s economic growth is at 3.9% for 2018, which is 0.4 percentage points higher when compared to the outlook reported in May.
The bank predicts a 3.5% GDP growth for Latvia in 2019. This bank decided to keep this outlook unchanged.
Compared to the previous outlook in May, Lithuania’s economic growth outlook for 2018 has been increased by 0.2 percentage points to 3.4%. Next year’s GDP growth outlook for Lithuania remains unchanged – 2.8%.
Estonia’s GDP, according to EBRD, will grow by 3.6% this year, which is 0.2 percentage points less when compared to May’s estimate. Next year, Estonia’s economic growth may reach 3%. Estonia is the only country in the Central European and Baltic region whose GDP growth outlook has been reduced for 2018.
It is mentioned in the outlook that economic growth rate in Central Europe and Baltic States has become faster in the first six months of 2018, which is thanks to increased consumption by residents. Region’s economy has grown 4.7% in the first half-year of 2018, as opposed to the average 4.4% last year.
The newest outlook shows that Central Europe’s and Baltic States’ economic growth will reach 4.3% this year and stay at around 3.5% next year. The expected slowing of the growth rate is expected with shortage of qualified workforce, slower global trade rate and the worsened state of EU business environment.
At the same time, the bank expects the region’s economy to grow 3.2% this year instead of 3.3% expected prior. Economic growth outlook for 2019 has been reduced from 3.2% to 2.6%.