The international monetary Fund (IMF) has significantly improved growth forecasts for the gross domestic product (GDP) of Lithuania, Latvia and Estonia in the years 2017-2018.

In the October review of world economic prospects World Economic Outlook (WEO), the Fund reports that the forecast for economic growth in Lithuania this year and next is 3.5%.

In its April review, the IMF predicted for Lithuania’s GDP growth in 2017 2.8% 2018 3.1%.

According to the new WEO, inflation in Lithuania this year will amount to 2.8% next year – 2%, the deficit of the current account 1.6% of GDP and 1.5% respectively. The unemployment rate, according to the estimates of IMF experts, will decline this year to 7.4% next year to 7.2% (7.9% in 2016).

The GDP growth forecast for Latvia this year is 3.8%, and for 2018 and 3.9% (in the April survey – 3% and 3.3%). Inflation is projected at 3% in each year, the deficit in current account of 0.3% of GDP and 1.5% of GDP, respectively . It is expected to reduce unemployment to 9% this year and 8.7% next year (9.6% in 2016).

Among Baltic countries the highest GDP growth is expected in Estonia, 4% in 2017 and 3.7% in the next (the April forecast of 2.5% and 2.8%). Inflation is expected to stand at, respectively, 3.8% and 3.4%. Current balance of payments will be surplus in the amount of 1.8% of GDP this year and 1.4% in 2018. The unemployment rate will be 8.4% and 9% (6.8% in 2016).

GDP growth in the Eurozone, the IMF forecasts 2.1% in 2017, slowing to 1.9% next year. Inflation in 19 countries of the Eurozone will reach 1.5% this year and 1.4% in 2018, the surplus in the current account – 3.1% and 3%. Unemployment is expected to decrease to 9.2% and 8.7%.