Analytics, Banks, Economics, Estonia, GDP, Latvia, Lithuania

According to the group's latest Nordic Outlook, Lithuania's GDP will grow 3.4% this year, compared to 4.3% in Latvia and 3.4% in Estonia. The growth rates will stand at 3, 3.5 and 3% respectively in 2019.

"We estimate that growth in all three Baltic states will slow next year due to export's smaller contribution to growth. But household consumption and investment will continue growing at a historically-fast rate. Naturally, household expectations might quickly change due to unplanned unfavorable external factors," Tadas Povilauskas, chief analyst at SEB in Lithuania, said.

In his words, Lithuanian households' saving rate went further down in 2017, reaching minus 1.5% from their disposable income, compared to an increase to 11.6% in Estonia, which means that too many people in Lithuania live without the so-called financial pillow or it's too thin, the analyst said.

"Slower growth in consumption in Lithuania, compared to other Baltic states, is one of the reasons for the fact that Lithuania lags behinds the neighboring countries in terms of growth," Povilauskas said.

SEB estimates that Lithuania's economy will slow to 2.6% in 2020, compared 3.2% in Latvia and 2.8% in Estonia.