OECD forecasts Latvia's GDP growth at 3.5%

The Organization for Economic Cooperation and Development (OECD) forecasts that Latvia's gross domestic product (GDP) will grow by 3.5% this year, according to a report published on June 8.

Next year, 1.6% growth is estimated for Latvia's economy.

The consumer price index in Latvia, as predicted by the OECD, will rise by 13.3% this year and by 8.6% next year. The unemployment rate in Latvia, according to OECD estimates, will rise from 7.2% this year to 7.4% next year.

The OECD report says that Latvia's export growth will slow, taking into account the consequences of the Ukraine war, material shortages, and weaker economic activity in the European Union, but strong demand for some of Latvia's major export products, including timber and food products, will slow the fall rate. Meanwhile, inflation will remain at high levels. Changes in external demand will contribute to a modest increase in unemployment.

For Lithuania, the OECD forecasts the second-fastest economic growth of 1.8% in the Baltic States this year and 1.6% next year.  Estonia's forecasts of GDP growth are 1.3% this year and 1.8% next year. 

The global economic growth forecast for this year in the OECD has been reduced to 3%, compared with 4.5% in December.

In the eurozone economy as a whole, the OECD expects GDP growth of 2.6% this year and 1.6% next year.

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