Falling exports, and declining GDP's to hit Baltic's in the new year.

Jan 21, 2009
TBT Staff

RIGA- In a recent publication, Nordea bank estimates Baltic GDP's to fall in the upcoming year.

In addition to the negative GDP outlook, Nordea bank predicts that budget deficits will grow and exports will fall. However, the negative predictions are not just limited to the three Baltic states, Nordea also predicts that Finland and Sweden will see a shrinking GDP.

Nordea predicts that Latvia and Lithuania will fair better than Estonia with exports falling 2 percent as opposed to Estonia's 5 percent in 2009. 

Lithuania is also predicted to fair better in terms of GDP decline at 3 percent, while Estonia is estimated to fall 4.5 percent.

Latvia is predicted to fair the worst with a decline of 6 percent. The bank is predicting the decline will continue into 2010.

However, Scandinavian countries Finland and Sweden's GDP will still see some shrinking as well, but levels will remain under 2 percent.

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