Analytics, Economics, Estonia, Financial Services, GDP, Latvia

He said that 3.3% growth is still an optimistic figure, and that downward risks remain. Nordea predicts GDP growth for Latvia to be at around 2.9% next year.

At the beginning of the year, Nordea predicted Latvia's GDP growth would be at around 5% this year, but was later reduced to 3.8%.

The main ''engine'' for Latvia's economic growth remains domestic consumption, and that the construction sector has also helped substantially this year.

However, Nordea experts point out that Latvia's ''Achilles heel'' remains investments, as only several million euros have been invested this year. Belevics expressed hope that this situation will improve as EU funding from the bloc's new multi-annual budget become available.

Meanwhile, Nordea experts predict that Lithuania's GDP will increase by 2.5% this year, and by 2.8% next year.

The Nordea bank cut Estonia's economic growth forecast for this year to 0.7% in its fresh economic forecast, LETa/Postimees Online reports.

In spring, Nordea forecast Estonia 1.2% economic growth for this year.

Nordea said at its homepage that in the second half of this year, Estonia's economic growth has been stalled by slower recovery of Estonia's main export markets and the new geopolitical risks. The labour market and domestic consumption have remained strong, as expected; the consumption is supported by close to zero price growth, which remains below the euro area average.

When export markets recover, Nordea forecasts for Estonia economic growth that in 2015 could reach up to 2.7%. Uncertainty remains high though, the recovery in export demand is not expected before the end of the next year.