The International Monetary Fund (IMF) expects Latvia to record the second-fastest economic growth among the Baltic states this year, according to its latest World Economic Outlook report published on Tuesday. The IMF forecasts that Latvia’s economy will grow by 2.3% in 2026, followed by a more moderate increase of 1.8% in 2027. According to the latest projections, inflation in Latvia is expected to reach 3.6% this year and rise to 3.9% next year. The IMF forecasts the strongest economic growth among the Baltic states in Lithuania, where gross domestic product (GDP) is expected to increase by 2.7% in 2026, followed by growth of 2.1% in 2027. Consumer prices in Lithuania are projected to rise by 5.4% this year, while inflation is expected to slow to 3.
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