On Tuesday, 30 November, the Organisation for Economic Cooperation and Development (OECD) published a report in which Latvia is predicted to have the slowest economic growth among Baltic states this year.
OECD predicts Latvia’s gross domestic product (GDP) will grow 4.3% this year.
Next year Latvia’s economy is estimated to grow 3.6% and in 2023 the prediction for GDP growth is 4.8%.
The consumer price index in Latvia, according to OECD, will grow 2.9% this year, 4.9% next year and 2.7% in 2023.
The level of unemployment in Latvia, based on estimates from OECD, will drop from 7.5% this year to 6.6% next year and 6.2% in 2023.
OECD notes that Latvia’s economy is predicted to have strong growth, but there are still considerable risks involving Covid-19 pandemic and weak vaccination coverage. The organisation predicts Latvia’s economic growth will be driven by residents’ consumption and exports.
For Estonia OECD predicts the most rapid economic growth among Baltic States – 9.6%. In the next two years Estonia’s economy is expected to grow 4.5% and 3.8% respectively. Consumer prices in Estonia are expected to grow 4.1% this year, 6% next year and 3.2% in 2023. Unemployment in Estonia, according to OECD, will reach 6.2% this year, 5.4% next year and 5.3% in 2023.
For Lithuania OECD predicts GDP growth of 5.1% this year, 3.8% next year and 3.5% in 2023.
As for consumer price rise, Lithuania is expected to experience 3.8% growth this year, 3.2% next year and 2.5% in 2023. Unemployment in Lithuania will be 7.1% this year, 6.5% next year and 6.1% in 2023.
For the global economy OECD predicts growth will drop to 5.6% for 2021 as opposed to the previous outlook of 5.7% suggested in September. The organisation notes that the epidemiological situation raises concerns, as does high inflation and problems with supply chains. OECD also explains that Covid-19 vaccine production and their distribution remain a priority.
OECD predicts 3.7% growth for the global economy in 2022 and 2.4% in 2023.
For Eurozone OECD expects GDP growth of 5.2% this year, 4.3% next year and 2.5% in 2023. Germany’s economic growth is expected to be 2.9% this year, 4% next year and 2.6% in 2023.
For USA GPD growth is predicted at 5.6% this year, 3.7% next year and 2.4% in 2023.
OECD predicts Latvia to have the slowest economic growth among Baltic States
