Analytics, Baltic, Economics, GDP, Markets and Companies

In September, DNB forecast growth of 0.7% for Estonia, but based on the latest data, now forecasts 1.7%. Latvian and Lithuanian economies are expected to grow by 2.4% and 2.8% respectively this year.

DNB lowered expectations for the next year, however, for all the Baltic countries. The economic growth of Estonia is expected to be 2%, that of Latvia 2.5% and that of Lithuania 2.6%.

Next year's pessimistic forecast is largely due to the uncertain external environment in the Baltic States. "The confrontation of Russia and the West affects the predictability of the business environment, which in turn reduces the willingness of companies to make investments," said Chairman of the Board of the Bank DNB Atle Knai.

Last year, Russia was in export volume the third-most important trade partner for Estonia and the most important trade partner for Latvia and Lithuania.