OREANDA-NEWS. Latvia's gross domestic product (GDP) could increase 6,2 percent in 2008, which is considerably slower that this year's rate, when GDP is expected to grow by 10,5 percent, as the International Monetary Fund (IMF) reports in its latest World Economic Outlook, reported the press-centre of PrivatBank.

IMF also envisages that inflation and current account deficit will remain high in Latvia.

According to the IMF forecasts, the average inflation in Latvia could reach 8,9 percent next year, compared to 9 percent this year, but current account deficit could rose from 25,3 percent of GDG this year to 27,3 percent of GDP in 2008.

Estonia's economy could grow by 8 percent this year, and 6 percent next year. Whereas, Lithuania is estimated to have a 8 percent GDP growth this year, and 6,5 percent in the following year.

Inflation rate in the neighboring countries will remain lower than in Latvia - at 6 percent this year and 7 percent next year in Estonia, and at 5,2 percent and 4,6 percent respectively in Lithuania.

Current account deficit in Estonia could decrease from 16.9 percent of GDP this year to 15,9 percent GDP next year, and in Lithuania - from 14 percent of GDP to 12,6 percent.

IMF expects that the highest GDP growth next year will be registered in such countries as Angola (27,2 percent) and Azerbaijan (23,2 percent). Whereas, economy growth in Zimbabwe could shrink by 4,5 percent, and in Iceland - by 0,1 percent.

The highest inflation rates in the world are still in Zimbabwe, where inflation this year could reach already 16,000 percent, but IMF declined to make any forecasts for the next year. The smallest inflation in the world is expected to be in Japan next year – 0,5 percent.

According to the latest forecast, global growth would slow from 5,2 percent this year to 4,8 percent in 2008. The slowdown of the world's economic growth is related to ongoing difficulties in the United States mortgage and housing market.