Baltics see positive economic signs

  • 2010-02-11
  • Oskars Magone

In a rare bout of good news, the Baltic States have announced that they may be on the way to resuming economic growth.

RIGA - All three Baltic States have begun to see some long-awaited positive signs and forecasts for their economies, signifying the beginninge of the end of one of the economic crisis in the region. 

The positive indicators are welcome news as the Baltic States have been among the hardest hit in the world by the economic crisis, with gargantuan GDP declines in all three countries.

Estonia's national statistics agency released data on Feb. 11 indicating that the country had seen a smaller-than-expected 9.4 percent annual drop in gross domestic product in the fourth quarter of last year. By way of comparison, compared to data from the year before the economy contracted 15% in the first quarter, 16.1% in the second quarter and 15.6% in the third quarter.

The data indicates that the country may have bottomed out and be on the path to returning to growth - just in time for the scheduled adoption of the euro at the start of 2011.

The Latvian Finance Ministry recently released some hopeful news of its own, claiming that the economy may return to growth as soon as the middle of the year.

"Although the rate of the downturn is still steep, it is beginning to slow down and, just like most other economic indicators, suggests that the economy is gradually stabilizing... [there is] hope that the economic situation will gradually stabilize in the first quarter of 2010 and growth will resume in the second half of 2010” said Aleksis Jarockis, Spokesman for the Finance Minister, in a press release.

The Lithuanian Finance Ministry, meanwhile, has gone a step beyond by predicting overall economic growth in 2010.

Earlier this week the finance ministry said the economy would expand 1.6% in 2010, followed by growth of 3.2% in 2011. This constitutes a major revision of its previous forecast of 1.5% economic decline this year.