The European Bank for Reconstruction and Development (EBRD) has adjusted its economic growth forecasts upward for all three Baltic states this year. Specifically, Latvia's GDP growth projection has increased to 2.2%, up from a previous estimate of 1.9% made in September. Estonia's growth forecast has also been revised, now expected to reach 2.2%, while Lithuania's GDP growth forecast sees a slight increase to 3.3%. Moreover, the EBRD anticipates that all three countries will experience identical growth rates of 2.5% next year.

The bank indicates that Latvia's economic activity performed better than expected last year. The actual GDP growth for Latvia was recorded at 1.7%, a notable increase from an anticipated 0.9%, per the bank's September expectations. Contributing factors to this growth include significant investment activities projected to increase by nearly 10% in 2025, spurred by the implementation of European Union-funded projects, procurement in the defense sector, and improved lending conditions.

These positive revisions by the EBRD highlight a strengthening economic outlook for the Baltic region, which could lead to increased investment opportunities and a boost in consumer confidence. The alignment of growth forecasts across the three countries indicates a collaborative regional economic trajectory, potentially setting the stage for a more integrated economic environment as they advance towards common goals in recovery and development.