Baltics once again lead EU in economic growth

  • 2010-10-07
  • TBT Staff

The roller-coaster Baltic economies are once again on the upswing, with Lithuania now leading the EU in GDP growth.

VILNIUS -- Lithuania registered the EU's fastest economic growth rates in the second quarter, an indication that the "Baltic Tigers" may once again be back on track to resume their places as the most dynamic economies in Europe.

According to eurostat, the EU's official statistics agency, Lithuania topped the EU growth charts with a 3.2 percent growth in GDP in the second quarter of the year. Lithuania was followed by Germany at 2.2 percent and Estonia at 1.9 percent (on par with Finland and Sweden). Latvia's growth was slightly below average but still positive at 0.8 percent.

The Baltic States' return to growth marks an incredible turnaround after the three countries became some of the worst hit in Europe by the economic crisis.

With a return to growth, however, Lithuania and Estonia are again forced to contend with their greatest pre-crisis economic problem - inflation.

Lithuania in September raised its inflation forecast for the year to 1.1%, up from previous estimates of just 0.1%.

Estonia, meanwhile, saw a year-on-year September inflation rate of 4%, up from 2.9% in August and the highest that the country has recorded since January 2009.