The European Bank for Reconstruction and Development (EBRD) has lowered its GDP growth forecasts for all three Baltic States in both 2026 and 2027, LETA reports. The bank now projects that Estonia’s GDP will grow by 2.1% in 2026 and 2.3% in 2027. In February 2026, the bank’s GDP growth forecast for Estonia was 2.2% in 2026 and 2.5% in 2027. Latvia’s GDP will grow by 2.0% (2.2%) in 2026 and 2.3% (2.5%) in 2027, while GDP growth in Lithuania will reach 3.0% (3.3%) in 2026 and 2.2% (2.5%) in 2027, the bank projects. The EBRD noted that growth in the Baltic States continued to be supported by resilient household consumption, rising defence spending, and public investment. However, higher energy prices, persistent cost pressures, and weak export demand created increasingly challenging conditions, the bank pointed out.
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