Despite difficulties in the global environment, the Baltic economies have so far performed better than expected, writes Swedbank in its new outlook of the Baltic economies, bbn.ee reports.
Below are abstracts from the outlook that was unveiled on September 26.
Distant from the epicentre of the European crisis, these countries have seen strong growth, but, in the rest of this year, activity is expected to slow as the trade and investment climate is weakening.
If developments in the euro area follow Swedbank’s scenario, a pickup in activity is likely during 2013 and 2014. GDP growth is expected to increase from 3-4% 2012 and 2013 to 4.5-5.2% in 2014 in the Baltic countries.
Compared with Swedbank’s April forecast for these countries, GDP growth with few exceptions has been revised up for 2012, while the reverse applies for 2013. Growth will gradually pick up from 2013 onwards. Sweden and the Baltic countries are highly dependent on the global economy, which, compared with Swedbank’s previous forecast, will grow slower in 2012, at 3.0% (3.1%), and in 2013, at 3.1% (3.4%), before reaching 3.4% in 2014.