Latvia’s GDP will grow by 1.7% in 2025, according to the Bank of Latvia’s revised macroeconomic forecast, LSM reports. In June 2025, the central bank projected 1.2% GDP growth in 2025. The new forecast expects economic growth to accelerate thanks to increased domestic and external demand. The GDP will grow by 2.8% in 2026, by…
Estonia’s GDP will grow by 3.6% in 2026, but economic growth will slow down to 2.5% by 2028, according to the Bank of Estonia’s latest forecast, ERR reports. Growth in 2026 will be driven by increased exports and government stimulus, the central bank said. The general government budget deficit will be the largest in 30…
Leaders of the three Baltic States took part in the first Eastern Flank Summit, which was organised by Finnish Prime Minister Petteri Orpo, LETA reported. The summit was also attended by leaders from Bulgaria, Poland, Romania, and Sweden as well as EU defence commissioner Andrius Kubilius. Estonian Prime Minister Kristen Michal noted that Europe’s eastern…
The European Commission (EC) warned that the current funding model for Estonia’s public broadcaster, Eesti Rahvusringhääling (ERR), may violate the European Media Freedom Act (EMFA), ERR reports. Giuseppe Abbamonte, deputy director-general of the EC’s Directorate-General for Communications Networks, Content, and Technology in charge of media policy, stated that Estonia’s protection of the independence of public…
The new National Security Strategy (NSS) of the United States shows that the US understands the security sensitivities of the Baltic region, Lithuanian Prime Minister Inga Ruginiene stated, BNS reported. Speaking after a joint meeting with her Estonian and Latvian counterparts in Riga, Ruginiene said that the US had assured that it would not withdraw…
The Lithuanian parliament, the Seimas, has approved the state budget for 2026 with 80 votes for, 39 against, and 7 abstentions, BNS reports. Under the budget, annual revenues, including EU funds, will amount to EUR 21.07bn and expenditures to EUR 27.51bn. The government’s net borrowing limit has been increased to EUR 7.79bn, ELTA reports. The…
Latvia’s Road Transport Administration (ATD) has signed an agreement with Czechia’s Skoda Group for the purchase of nine battery-powered electric trains, LSM reports. Skoda was the only eligible bidder for the contract, LETA reported. Under the deal, worth EUR 89.409mn, Skoda is due to deliver the BEMU trains in 2029. ATD has an option to…
The United States will not reduce its troops presence in Lithuania, currently numbering over 1,000, Lithuanian Prime Minister Inga Ruginiene stated, BNS reports. Speaking in an interview with LRT, Ruginiene assured that there was no risk of the US cutting the number of troops in the country following the government’s decision to raise defence spending…
The Estonian parliament, the Riigikogu, has approved the state budget for 2026 with 51 MPs voting for and 37 against, ERR reports. The government estimates annual budget revenue at EUR 18.6bn and expenditure at EUR 19.5bn. Investments will total EUR 1.3bn, which will be 45% more than in 2025. Then government expects tax revenues to…