he Baltic states' economies - last year among Europe's fastest growing - have abruptly gone into reverse and Estonia is already in recession, official figures confirmed yesterday.
The downturn in the three states is a grave blow to their hopes of swiftly catching up with the rest of the European Union. Even Estonia, the richest of the three, still only has a gross domestic product per capita of about three quarters of the EU average. "The key thing is that it's only going to get worse from now on," Neil Shearing of Capital Economics, who forecasts a 2.5 per cent full-year decline in Estonian GDP, said.
The country's economy contracted 0.9 per cent in the second quarter compared to the first, during which there was also a 0.5 per cent quarter-on- quarter decline, according to the statistics office. A recession is defined as two consecutive quarters of negative growth.
Latvia is also poised to enter recession by the end of the year and Lithuanian growth is also slowing sharply, though it is likely to escape recession.
Both in Latvia and Estonia policymakers are now scrambling to revise their economic forecasts downwards and to balance budgets that are set to go into the red because of falling tax revenue. Source
http://www.baltictimes.com/news/articles/21072/
when the heart corrects itself
7 years ago
1 comment:
At least your leaders will admit there is a recession!
I don't want to spam your blog but I did not see a place to contact you so feel free to edit/delete this part of my comment. I have an affiliate program where you can offer road maps of Estonia and earn commission. For more information see my web site at: TrekTools.com. The go to the bottom and see the 'Affiliate Info' area. Thanks.
Post a Comment