Danske Bank: Baltic economies are rebounding
30.07.2010, 10:48The Lithuanian economy will return to annual growth this year while Latvia and Estonia, are also rebounding, said Violeta Klyviene, chief Baltic analyst at Danske.
Speaking at a press conference in Vilnius yesterday, Klyviene added that Estonia probably returned to annual growth in the second quarter.
With regard to Lithuania, output will probably expand 1.2 percent, compared with a May forecast for a 2.2 percent contraction, Danske Markets said. The economy may grow 3.6 percent next year.
The revision follows yesterday’s report that the economy resumed growth last quarter. Output expanded 1.1 percent in the second period, after a 14.8 percent drop for all of 2009.
“The recovery in the eurozone and Russia will have a positive impact on the exports outlook,” the report said. “Exports have already begun moving up strongly and industrial production should improve further as well.”
Growth is likely to accelerate in the second half, said Violeta Klyviene.