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 Tuesday.
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.
Global economic growth forecast to accelerate in 2027
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.