The International Monetary Fund (IMF) expects Latvia to record the second-fastest economic growth among the Baltic States this year, according to its latest World Economic Outlook report published on October 13.
The IMF forecasts that Latvia’s economy will grow by 2.3% in 2026, followed by a more moderate increase of 1.8% in 2027.
According to the latest projections, inflation in Latvia is expected to reach 3.6% this year and rise to 3.9% next year.
The IMF forecasts the strongest economic growth among the Baltic states in Lithuania, where gross domestic product (GDP) is expected to increase by 2.7% in 2026, followed by growth of 2.1% in 2027.
Consumer prices in Lithuania are projected to rise by 5.4% this year, while inflation is expected to slow to 3.5% next year.
In Estonia, the IMF expects economic growth of 2.1% in 2026, accelerating slightly to 2.2% in 2027.
Inflation in Estonia is projected to reach 3% this year and 3.3% next year.
For the eurozone as a whole, the IMF forecasts GDP growth of 1.1% in 2026, with economic expansion expected to accelerate slightly to 1.2% in 2027.
Eurozone inflation is projected to reach 3.1% this year before easing to 2.8% next year.
In Germany, Europe’s largest economy, GDP is expected to grow by 1.3% in 2026 and 1.1% in 2027.
The IMF forecasts that the United Kingdom’s economy will expand by 1.3% this year, followed by growth of 1.2% next year.
Meanwhile, the IMF forecasts that Ukraine’s GDP will increase by 1% in 2026, with growth accelerating to 3.5% in 2027.
In Russia, which continues its war of aggression against Ukraine, the IMF expects economic growth of 0.9% in both 2026 and 2027.
The IMF forecasts that the US economy will expand by 2.3% in both 2026 and 2027.
In China, the world’s second-largest economy, GDP is expected to increase by 4.5% this year and 4% next year.
Japan, the world’s third-largest economy, is projected to record GDP growth of 0.7% in both years.
The IMF expects the global economy to grow by 3.1% in 2026, with growth accelerating to 3.4% in 2027.
The latest projections suggest that Latvia will outperform the eurozone average this year, although its economic growth is expected to slow in 2027. (BNN)