Analytics, Baltic, Economics, Estonia, GDP, Inflation

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 10:45

SEB maintained Estonia’s GDP growth outlook, Swedbank downgraded

BC, Tallinn, 27.08.2014.Print version
According to a new economic outlook for the Nordic countries and Estonia compiled by SEB, Estonia’s GDP will grow by 0.5% in 2014, writes LETA/Postimees Online. Swedbank downgraded the growth outlook to 0.8%.

The bank SEB estimates that Estonia’s economic growth next year will be 1.8%, which is less than estimated in the outlook that was published in spring.

 

In comparison with its projections compiled in May, SEB did not change Estonia’s economic growth outlook for 2014, but downgraded outlooks for next year by 0.5 percentage points. SEB predicts that in 2016, Estonia will see economic growth of 3%.

 

The bank estimates that Estonia is relatively more affected by stagnating Russian economy due to greater importance of exports in the economy, and hence the weakness of the Russian economy and the sanctions implemented by Russia cause a deceleration in growth.

 

SEB projects faster growth for the Latvian and Lithuanian economies (2.5% and 2.7%, respectively).

 

According to SEB’s economic outlook, the inflation rate in Estonia this year will be 0.1%, in 2015 1.6% and in 2016 1.9%.

 

Whereas in its spring outlook Swedbank had predicted that Estonia’s economy would grow by 1.8% this year, on Tuesday the bank downgraded the growth outlook to 0.8%, writes LETA/Postimees Online.

 

The bank reported that global economy is growing much slower than previously projected. “Economic growth and imports demand outlook among Estonia’s principal trade partners has also deteriorated,” said Swedbank Chief Economist Tõnu Mertsina, adding that slow recovery in the global economic situation and in that of Estonia’s trade partners will make it possible for Estonia to increase exports turnover, which in turn requires increases in investments. “This will accelerate economic growth in Estonia in 2015 to 2.3% and that of 2016 to 3%,” he said.

 

Mertsina estimated that this autumn, the deflation indicators of the summer will be replaced with modest price growth, yet in the course of the entire year of 2014, the price growth will only reach 0.3%.






Search site