Analytics, Banks, Estonia, Good for Business, Investments
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 23:09
Swedbank: Investments by Estonian businesses to start growing again
"While investments by businesses will be decreasing
this year, this is largely due to the base effect -- in the first half of last
year investments grew at an exceptional speed in many areas of activity, such
as wood industry and the transport sector. Next year the impact of the base
effect will recede and corporate investments are expected to demonstrate
moderate growth then," Mertsina said at the presentation of Swedbank
Economic Outlook for fall 2018.
"In the next few years loan interest rates will remain
low, which supports investment. It is positive that the structure of corporate
investments is increasingly geared towards increasing efficiency,"
Mertsina said.
He said that where investment in machinery and technology
has grown, investments made in buildings have decreased.
"Even through growth in government sector investments
is expected to decelerate this year and in the next couple of years, their
volume will remain high in a stable manner measured as a ratio to GDP and they
will continue to provide a strong stimulus to the economy," Mertsina said.
Investments by the Estonian government sector measured as a
ratio to GDP amount to 5.4% this year and are set to remain in the
region of 5% in the coming years -- the highest level in the EU.