On Tuesday, the International Monetary Fund (IMF) lowered Latvia’s gross domestic product (GDP) growth forecast for next year.
In the latest IMF report on the world economic outlook (“World Economic Outlook”), Latvia’s economy is expected to grow by 2.5% this year and 1.6% next year.
In June, concluding the mission to Latvia, the IMF forecast that Latvian GDP will increase by 2.5% this year and 2.7% next year.
The latest forecasts say that inflation in Latvia this year and next year is expected to be 16.5% and 8% respectively. According to IMF calculations, the unemployment rate will be 7.4% this year and 7.2% next year, while the current account will record a deficit of 3.3% of GDP this year and a deficit. 3% of GDP next year.
In Lithuania, GDP growth is expected to be 1.8% this year and 1.1% next year. Inflation in Lithuania is expected to be 17.6% this year and 8.4% next year, while the current account deficit is expected to be 1.6% of GDP this year and 2, 1% of GDP next year.
The IMF expects the unemployment rate in Lithuania to be 7.3% this year and 7% next year.
In Estonia, the IMF expects economic growth of 1% this year, which will accelerate to 1.8% next year. The IMF expects inflation in Estonia this year and next year to be 21% and 9.5% respectively. The current account deficit is projected to be 0.2% of GDP this year, while a surplus of 0.1% is expected for next year. The unemployment rate in Estonia, according to IMF estimates, will be 6.6% and 6.8% respectively this year and next year.
In the Eurozone as a whole, the IMF expects GDP growth of 3.1% this year, but next year’s economic growth is estimated to slow to 0.5%.
The IMF expects inflation in the 19-country single currency area to be 8.3% and 5.7% respectively this year and next year. On the current account, a surplus of 1% of GDP is expected this year and a surplus of 1.4% next year. On the other hand, the unemployment rate in the eurozone will be 6.8% this year and 7% next year, according to the IMF’s autumn forecast.
In Germany, Europe’s largest economy, GDP growth is expected at 1.5% this year, but is expected to decline by 0.3% next year.
The IMF expects UK GDP to grow 3.6% this year and 0.3% next year.
Meanwhile, in Ukraine, the fund expects a 35% decline in GDP this year, but forecasts for next year have not been made public. Russian GDP will decline by 3.4% this year and 2.3% next year, according to IMF estimates.
The IMF expects the growth of the US economy to be 1.6% this year and 1% next year, while the GDP growth of the third largest economy in the world, Japan, will be 1%. , 7% this year and an increase of 1.6% is expected next year.
On the other hand, in China, the second largest economy in the world, GDP growth is expected at 3.2% this year and 4.4% next year.
For the world economy, the IMF expects growth of 3.2% this year and 2.7% next year.
