aA
SEB revises down Baltic growth projections after unimpressive H1
© Shutterstock nuotr.

SEB Bank has revised down Lithuania's GDP growth projections, estimating that the country's economy will grow 2.2% this year and 2.5% in 2017.

In its earlier projections, the bank expected Lithuania's GDP to grow 2.8% and 3.2%, respectively.

SEB, which published its "Nordic Outlook" report this week, sees the Latvian economy growing 2.4% this year and 3.5% in 2017, whereas Estonia's GDP is expected to inch up 1.7% and 2.4%, respectively.

Earlier estimates for the three Baltic states were higher, but slower than expected growth in the first half of this year mandated a review.

Annual inflation is expected to grow from 0.8% this year to 1.5% next year and 2.5% in 2018. Meanwhile unemployment is expected to fluctuate between 7% and 8% for the next two years.

SEB has also cut its Eurozone growth estimates, with 1.6% growth expected in 2016, which is 0.1 point below last year's.

Although analysts are optimistic about decreasing unemployment, rising consumption and modest growth, the Eurozone is expected to weather the results of Brexit. SEB analysts predict that the United Kingdom will trigger Article 50 of the EU charter on secession in early 2017. The British economy is expected to stagnate this year and rise only 0.9% next year.

US economic policy is not expected to change much, with specialists only giving Donald Trump a 15% chance of winning the presidential election. With unemployment at near historic low and wage growth accelerating, the US Federal Reserve, is expected to raise interest rates a number of times next year.

The Russian economy is slowly rising from a lasting recession with two quarters of positive growth. After a 0.4% drop this year, the Russian economy is expected to grow 1% next year. All of this is buoyed by oil prices which rose early this year and the recently strengthened rouble which has slowed inflation and but a break on the decline in purchasing power.

|Populiariausi straipsniai ir video

Remains of political prisoners in Kazakhstan to be reburied

Lithuania plans to rebury the remains of political prisoners buried at the Rudnyk Cemetery in...

Military training restrictions eased as COVID-19 situation improves

Lithuania is easing military training restrictions as the coronavirus situation in the country is...

Group of MPs propose granting asylum to Hong Kong people

A group of Lithuanian lawmakers representing different political groups in the country's parliament is...

Free movement between Poland and Baltics to be restored next week

Free movement between Poland and the Baltic states will be resumed next week, Lithuanian Prime...

7 new coronavirus cases in Lithuania

On Thursday, Lithuania has detected 7 new coronavirus cases. Overall, there have been 1694 COVID-19...

Top news

Free movement between Poland and Baltics to be restored next week

Free movement between Poland and the Baltic states will be resumed next week, Lithuanian Prime...

Candidates list of social democrats for upcoming Seimas election approved

The presidium of the opposition Social Democratic Party of Lithuania on Thursday approved the...

airBaltic plans to resume flights to London, Dublin and Dubrovnik but has no permits yet

Latvian airline airBaltic says it plans to resume flights from Vilnius to London and Dublin in...

7 new coronavirus cases in Lithuania

On Thursday, Lithuania has detected 7 new coronavirus cases. Overall, there have been 1694 COVID-19...

Foreign minister: EU's external borders unlikely to open until late June

The European Union 's external borders may remain closed until late June, Lithuanian Foreign...

|Maža didelių žinių kaina