Recent forecasts from the ERAB (European Reconstruction and Development Bank) suggest that Latvia's Gross Domestic Product (GDP) is expected to grow by 2.2% this year, an increase from the previously estimated 1.9% in September. Concurrently, Estonia's growth forecast for the current year has been raised by 0.2 percentage points, also to 2.2%, while Lithuania's GDP growth prediction has been slightly lifted by 0.1 percentage point to 3.3%. The positive adjustments reflect an optimistic view of the economic activity across the Baltic region.

The forecasts indicate that in all three Baltic nations, a uniform economic growth rate of 2.5% is anticipated for next year. This stable outlook is attributed to rising economic activity in Latvia, which the bank estimates saw a GDP increase of 1.7% last year—significantly higher than the 0.9% previously predicted in September. Such growth is indicative of a recovering economy, bouncing back from the impacts of recent economic challenges.

Further projections by ERAB suggest a substantial rise in investment in Latvia by 2025, estimated to nearly reach 10%, driven by the realization of European Union-funded projects, enhancements in the defense sector, and improving credit conditions. Additionally, household consumption spending is expected to surge in the latter half of 2025, boosted by rapid increases in real wages and heightened consumer confidence, signaling a broader recovery in the post-pandemic economic landscape.