On November 22, the Organisation for Economic Cooperation and Development (OECD) presented a report in which it named Latvia the second most rapid growth among Baltic States this year. According to OECD, Latvia’s GDP may grow by 2.3% in 2022.
For next year OECD predicts a 0.2% drop for Latvia’s economy. In 2024, Latvia will once again experience growth (+2.3%). OECD allowed as early as June that Latvia’s GDP could increase by 3.5% this year and 1.6% next year.
The coordinated consumer price index in Latvia, according to OECD, will increase by 17% this year, by 10.7% in 2023 and by 5% in 2024. Latvia’s unemployment level is expected to reach 6.7% this year, 7% next year and 6.8% in 2024.
OECD explains that Latvia is negatively impacted by the Russian-Ukrainian war, as well as very high inflation, which limits residents resident’s expenses. Business investments continue slowing down due to the high uncertainty and worsening of the financial situation. High energy costs and low external demand have a negative impact on industrial production.
For Lithuania OECD predicts the most rapid economic growth among Baltic States this year – 2.5%.
Next year and in 2024 Lithuania’s economy is predicted to have a growth of 1.6% and 2%, respectively. Consumer prices are expected to grow by 18.8% this year, 11.9% next year and 4% in 2024. Unemployment in Lithuania, according to OECD, will likely reach 5.8% this year, 6.5% next year and 6.7% in 2024.
For Estonia GDP growth is predicted at 0.8% this year, 0.5% next year and 3.2% in 2024. Consumer price growth in Estonia is expected at 20.2% this year, 10.8% next year and 2.8% in 2024. OECD predicts that the unemployment level in Estonia this year and in the next two years will be 5%, 5.3% and 6%, respectively. (BNN/Business World Magazine)