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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 13:31

SEB: in the coming years, the economic growth of Latvia and Lithuania will exceed Estonia’s

BC, Tallinn, 10.10.2013.Print version
SEB lowered Estonia's economic forecast for the current year from 1.5% to 1.3%, SEB said in a statement, informs LETA. The economic growth expectation for next year dropped from 3.3% to 2.6%; this is a result of decreasing investments and weak export growth.

"Estonia's economic growth will reach a modest 1.3% in 2013, due to decreasing investments and weak export growth, and partly due to the weak state of the Finnish economy. In 2014, improving external demand shall increase economic growth to 2.6% and in 2015 to 2.9%. In the near future, Estonia's short-term economic growth will remain below its potential (growth of three-four%) – growth is held back by continuously decreasing volumes of EU Structural Funds in the coming years," said Ruta Arumae, SEB Chief Economist, summarizing the new forecast that was published today.

 

This autumn, almost all Central and Eastern European countries are showing signs of economic recovery similar to Western Europe, so the low was in the second quarter of 2013. The recovery of the economies of Eastern European countries in the next few years shall be modest.

 

The situation differs from country to country – growth in Poland will recover following an unexpected serious slowdown, Russia is on a slower growth trajectory due to its deepening need for reforms when compared to the pre-crisis period, and Ukraine is forced to devalue its currency to come out of the crisis.

 

Latvia and Lithuania will continue to have the quickest growth in the region: Latvia at 4.8% in both coming years, and Lithuania at 3.5% next year and 4.5% the year after that.






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