Baltics | Lithuania outperforms the region
The Baltic region's economies are expected to return to growth in 2025, with Lithuania leading the way with an expected growth rate three times larger than its peers. Inflation remains stable in Lithuania and Latvia, while Estonia is projected to reach the target only in 2026. The retail and industrial sectors are again performing best in Lithuania, while facing challenges elsewhere. The hard data are further confirmed by the sentiment indices, which show Lithuania leading on all fronts. Budget deficits in the Baltic countries are expected to be around the Maastricht Criteria threshold, influenced by defense spending for the years to come. Despite poor economic performance in recent years, Estonia leads the region in Sustainable Development Goals.