Baltic Economic Outlook 2015
Many of our clients are interested in the economy of the Baltic region. Estonia, Latvia, and Lithuania have been members of both the EU and NATO since 2004. Estonia adopted the euro in January 2011, Latvia in 2014, and Lithuania in 2015.
The Baltic countries are holding up well, given the Russian turmoil – both raising export sales to other markets and thanks to strong domestic demand. But there is a negative impact on external trade and sentiment.
In Estonia, the growth forecast is revised up marginally on the back of stronger domestic demand. In Latvia and Lithuania, growth forecasts are kept unchanged as exports and investments are affected by geopolitical uncertainty, while domestic demand remains strong.
The regions growth outlook is cautiously optimistic, mainly because of the continued support from monetary policy – the ECB has recently been determined and aggressive in addressing the weak growth and low inflation with expansionary monetary policy.
or a more thorough analysis we advise you to see the reports from Swedbank – the largest bank in the region: See economic outlook..