The international credit rating agency, Fitch Ratings, has affirmed Lithuania’s long-term foreign-currency issuer default rating at A+ with a stable outlook, the Finance Ministry announced, BNS reports. The agency pointed to Lithuania’s credible policy framework, EU and eurozone membership, resilient economic growth, moderate government debt, and high institutional quality. Risks were related to the current…
The international credit rating agency, Fitch Ratings, has affirmed Latvia’s long-term issuer default rating at A- with a stable outlook, LSM reports. The agency noted Latvia’s “credible policy framework” and lower government debt than rating peers. However, Latvia had a higher exposure to geopolitical risks, smaller economy, lower GDP per capita, and weaker external finances…
The Lithuanian government has approved the draft state budget for 2027, BNS reports. Budget revenue, including EU funds, is expected at nearly EUR 22.2bn, which would be up 5.2% from 2026, BNS reports. Budget spending will total EUR 27.9bn, up 1.3% over a year. The State Social Insurance Fund’s (SoDra) revenue is projected at nearly…
Estonia’s annual GDP growth will reach around 2.5% in 2026, 2027, and 2028, the Bank of Estonia forecasts, Estonian World reports. The country’s economic recovery is driven by increased household consumption following tax changes, higher government spending financed by borrowing, and stronger manufacturing exports. The central bank urged to boost productivity and competitiveness. The biggest…
Lithuania’s budget deficit was the smallest in the Baltic States in the first quarter of 2026, according to Eurostat data, BNS reported. Lithuania’s budget deficit stood at 0.9% of GDP, which was down from 1.7% in the fourth quarter of 2025. Estonia’s budget deficit amounted 1.2% (1.3%) and Latvia’s to 1.9% (2.4%) of GDP. Meanwhile,…
Every major party in Estonia has added to the state’s debt burden, according to Kaspar Oja, senior economist at the Bank of Estonia, ERR reported. While the biggest budget deficits emerged during the coronavirus pandemic, Estonia has had structural deficits every year since 2017, Oja noted. His analysis found that when in government, the Conservative…
Latvia’s central bank, the Bank of Latvia, has lowered its GDP forecast for 2026-2028 markedly, LSM reports. GDP growth will amount to 2.0% in 2026, to 2.4% in 2027, and to 3.0% in 2028, according to the latest forecast. In December 2025, the central bank had projected that the GDP would grow by 2.8% in…
The International Monetary Fund (IMF) recommended that the Estonian government stabilise public debt by limiting budget spending and increasing revenue, ERR reports. IMF experts warned that if current policies continued, public debt would become unsustainable. GDP growth alone will not solve the country’s long-term challenges, they pointed out. Achieving more sustainable growth would require increasing…
Estonia’s Finance Minister, Jürgen Ligi, vowed to defend budget discipline and push back against populist spending proposals ahead of the parliamentary elections in March 2027, ERR reported. Ligi said that the country’s political culture had deteriorated badly, and acknowledged that populism had crept into his own Estonian Reform Party as well. He insisted on the…
