Latvia’s economic forecasts have been affirmed as well, whereas the forecast of Estonia’s gross domestic product (GDP) growth this year has been revised down to 2–2.5 percent, from 3.3 percent, due to slower than expected improvements in economic situation.
Lithuania’s GDP continued to demonstrate exceptional performance, the bank said in a press release adding that, just as expected, the country’s economic growth accelerated to 3.7 percent in the second quarter, from 3.5 percent in the first quarter.
“Comprehensive data has not yet been published. However, export, industrial and retail performance shows that fast growth of the country’s economy was driven by growing consumption and exports,” the press release quoted Violeta Klyvienė, Danske Bank’s senior analyst for the Baltic countries, as saying.
According to the bank, Latvia’s economic development has also been going in line with expectations and positive growth trends have been supported by growing domestic demand. Latvia’s GDP is also expected to grow by 3.5 percent this year, yet downside risks remain for the second half of the year.
Meanwhile, Estonia’s economic performance was disappointing in the first half of this year as the country’s GDP grew only 1.3 percent annually in the second quarter. Estonia’s consumer confidence is undermined by high inflation, which is going down gradually and remains the highest across the EU despite favorable trends on the global commodity market.
“Estonia’s growth was probably affected by sluggish growth in domestic investments, which resulted from a significant decline in public investments. Meanwhile, the private sector continues to reduce its financial liabilities restoring the debt and GDP ratio that was last seen in 2007. In fact, slow recovery of crediting and, consequently, of private investments is the result of uncertainty over euro zone recovery,” Klyvienė said.
