RIGA - Despite the fact that global political risks remain, all of Latvia's main export markets will see growth this year, which means that Latvia's economy too will see growth, Swedbank chief economic expert Martins Kazaks said during a presentation today about the Baltic real-estate market.
''The lowest point in the Baltics is behind us, which was in the third quarter of last year. However, growth will remain slow, and there is no reason to believe the prime minister's growth forecast of five percent, as we can only hope for around three percent growth this year,'' he explained.
The economic experts explained that growth in the three Baltic countries is similar, with the main different investment volumes - in Lithuania, there has been a minimal increase, while Latvia and Estonia are seeing reductions.
''Investments have been quite slow in the Baltics the past years, because without EU funds governments are not investing themselves, while private investors are being cautious,'' he said.
However, he added that despite the political risks around the world, the mood of entrepreneurs is one of growth.
''There is a schizophrenic atmosphere around the world at the moment. The political mood is quite weak, however, economies are growing relatively well. The main concerns in the political sphere remain associated with the new U.S. presidential administration - the main is not changing much also after the election. On the other hand, he promised that the United States plans on spending aggressively, which will have an upwards impact on the economy. This could be beneficial for us in the short-term, as Latvia's trade partners will be able to sell more and this is good for us as well. On the flip side, U.S. protectionism could hamper exports,'' Kazaks explained.