The International Monetary Fund (IMF) has lowered its forecast for the growth of Latvia's gross domestic product (GDP) for this year and the next, according to a new report released by the fund on Tuesday regarding the global economic outlook (World Economic Outlook).
In its report, the IMF forecasts that the economy of Latvia will grow by only 1% this year and by 2.2% next year. In comparison, in April, the fund expected Latvia's GDP to increase by 2% in 2025 and by 2.5% in 2026.
According to the latest forecasts, inflation in Latvia will be 3.8% this year and 2.6% next year. The IMF estimates that the unemployment rate will be 6.7% this year and will decrease to 6.6% next year. The current account balance deficit is expected to be 2.1% of GDP in 2025 and 2.3% of GDP in 2026.
For Lithuania, GDP is forecasted to grow by 2.7% this year and 2.9% next year. Inflation is estimated by the IMF to be 3.6% in 2025 and 3.1% in 2026, while the current account balance will have a surplus of 2.1% of GDP both this year and next year. The unemployment rate in Lithuania is projected to be 6.6% this year and 6.1% next year.
In Estonia, the IMF expects economic growth of 0.5% in 2025 and 1.5% in 2026. Inflation is projected to be 5.1% and 4.3%, respectively. The current account deficit is forecasted to be 0.9% of GDP this year and may increase to 2.2% of GDP next year. Unemployment is expected to be 7.9% this year and 7.4% next year.
In the Eurozone, the IMF forecasts GDP growth of 1.2% in 2025 and a slowdown to 1.1% in 2026. Inflation in the 20 Eurozone countries is expected to be 2.1% and 1.9%, while the current account surplus is projected to be 2.3% and 2.2%, respectively. The unemployment rate is estimated to be 6.4% this year and 6.3% next year.
For Germany, the largest economy in Europe, the IMF forecasts GDP growth of 0.2% in 2025 and 0.9% in 2026.
As for Ukraine, the IMF predicts economic growth of 2% in 2025 and an acceleration to 4.5% in 2026. At the same time, Russia is forecasted to have GDP growth of 0.6% this year and 1% next year.
In the USA, the IMF expects economic growth of 2% in 2025 and 2.1% in 2026, while in China, it is projected to be 4.8% and 4.2%, respectively.
Overall, the global economy is forecasted to grow by 3.2% in 2025 and 3.1% in 2026.
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