Baltic and Polish leaders urged the EU to allocate necessary funding for the Rail Baltica railway project under the EU’s multiannual financial framework in 2028-2034, the Office of the President of Lithuania reported. In a joint letter to European Council President António Costa and European Commission President Ursula von der Leyen, the leaders reaffirmed the…
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…
GDP growth in the Baltic States will be strongest in Lithuania in 2026, according to the International Monetary Fund’s (IMF) latest World Economic Outlook, LETA reports. The IMF projects GDP growth of 2.7% in Lithuania, 2.3% in Latvia, and 2.1% in Estonia in 2026. In 2027, the GDP will grow by 2.2% in Estonia, 2.1%…
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…
Estonia’s consumer price index (CPI) rose by 2.2% on year in July 2026, according to Statistics Estonia, ERR reported. The annual increase in prices was the smallest since April 2021. The average price of goods went up by 1% and services by 3.9%. Compared to June 2026, the CPI rose by 0.5%. Lauri Veski, consumer…
Estonia’s annual inflation may drop below 4% in 2026, the Ministry of Finance forecasts, ERR reports. Kristjan Pungas, economic analyst at the ministry’s fiscal policy department, linked the projection to the easing of the conflict in the Middle East. He noted that Estonia’s inflation rate was one of the lowest in the eurozone in June…
Latvia’s central bank and the country’s Finance Ministry have both lowered their GDP growth forecasts and raised their inflation forecasts. Latvia’s GDP growth will drop to 2.0% in 2026, before rising to 2.4% in 2027 and 3.0% in 2028, according to the Bank of Latvia’s latest macroeconomic projection. In December 2025, the central bank had…
Three political groups in the Lithuanian parliament, the Seimas, have signed an agreement on a new coalition government, BNS reports. The new ruling coalition will include the Lithuanian Social Democratic Party (LSDP), the Union of Democrats for Lithuania, and the joint parliamentary group of the Lithuanian Union of Farmers and Greens and the Electoral Action…
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…
