Consumers keep economies going

VILNIUS - SEB economists say that the Baltic States’ economies can resist negative trends in foreign markets because of relatively strong domestic demand and the robust competitiveness of exports; the development of the economies in the upcoming years will remain rather fast, reports ELTA.

The consumption growth will be supported by further reductions in unemployment and greater growth in wages in Latvia and Estonia. SEB analysts note that there have been more signs that Latvia will join the eurozone in 2014; meanwhile, Lithuania’s attention to euro introduction is waning.

“The development of Lithuania’s economy this year is keeping a rather good balance between the growth in consumption and exports, with the only weak spot in the lack of business investment. However, a slower growth of the German economy and the unstoppable eurozone recession will form a less favorable background next year. The economic forecasts for the USA and China have been upgraded; these are countries that are economically distant to Lithuania, yet, their development will also have some indirect and positive impact on Lithuania,” said SEB Lithuania’s chief analyst Vilija Tauraite.