Organization for Economic Cooperation and Development (OECD) predicts that economic growth is expected only in Latvia among the Baltic countries: the country’s gross domestic product (GDP) will grow by 1.1% this year, and a 2.4% increase is expected next year.
In November, the OECD predicted that Latvia’s GDP would increase by 0.2% and 2.3% this year and next year, respectively. According to the OECD, the agreed consumer price index in Latvia will increase by 11.2% this year and by 4.8% next year. The unemployment rate in Latvia, according to OECD estimates, will be 6.6% both this year and next year.
The OECD states that high inflation in Latvia will have a negative impact on consumer spending, but the growth rate of business investment will slow down, taking into account favorable financial conditions and considerable uncertainty.
The volume of exports has gradually increased due to the increase in external demand.
Inflation will decrease next year but remains at the same high level due to high producer prices.
The organization predicts that Lithuania’s GDP will remain constant this year, but will grow by 2.6% next year. This year, a 13.1% increase in consumer prices is estimated in Lithuania and a 5.7% increase is predicted for next year. Unemployment in Lithuania, according to OECD estimates, will be 7.6% this year, but next year it will decrease to 7.1%.
For Estonia, the OECD predicts a 1.3% drop in GDP this year, but next year a 3.2% growth is expected in the national economy. The consumer price increase organization predicts 9.2% and 3.4% respectively in Estonia this year and next year. Forecasts say that the unemployment rate in Estonia will be 5.9%, but will decrease to 5.7% next year. (BNN/Business World Magazine)