Baltic: EBRD’s GDP forecast down for Estonia, Latvia, up for Lithuania

The European Bank for Reconstruction and Development (EBRD) expects the Latvian and Lithuanian economies to grow and the Estonian economy to contract in 2024, LSM reports. The bank lowered its GDP growth forecast for Estonia and Latvia, but raised its forecast for Lithuania. EBRD now expects Estonia’s GDP to decline by 0.8% in 2024, down from a projected growth of 0.8% forecast in May 2024. Latvia’s GDP will grow by 0.9% (1.8%), while Lithuania’s GDP will rise by 2.3% (1.5%) in 2024. In 2025, the GDP will grow by 2.5% (3.5%) in Estonia, 2.4% (2.6%) in Latvia, and 2.5% (2.3%) in Lithuania, according to the EBRD’s updated regional forecast. Meanwhile, Baltic banking group Luminor expects Estonia’s GDP to fall by 1% in 2024 and grow by 1% in 2025, BNS reports. Latvia’s GDP will increase by 0.5% in 2024, while Lithuania’s GDP growth will reach 2.4% in 2024 and 3% in 2025.