EBRD ex­pects Latvia to have the most rapid eco­nomic growth among Baltics

Baltic News Network - - Front Page -

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%.


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