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SEB expects Lithuanian GDP to grow fastest among Baltic countries in 2015

Xinhua, March 27, 2015 Adjust font size:

Lithuanian economy will be the fastest growing among the three Baltic countries in 2015, SEB bank, a leading Nordic corporate bank, said in a business conference held here on Thursday.

The bank forecasts 2.6 percent GDP growth for Lithuania this year in its "Eastern European Outlook," while Latvian and Estonian economy should expand by 2.4 percent and 2.2 percent respectively.

The bank's experts point to geopolitical challenges arising from Ukraine crisis and Russia's role in it.

"Russian and Ukraine's conflict is undoubtedly a concern for the whole world, however the Baltic states, together with Finland, are the most affected by the outcome of sanctions and recession in Russia," Robert Bergqvist, chief economist at SEB group, was quoted as saying during the conference by ELTA news agency.

Nevertheless, more positive factors have been gaining ground in the euro zone, together with stimulating policy of the European Central Bank, Bergqvist noted.

In 2014, Lithuania's economic growth remained firm despite the geopolitical tension related to the Russia-Ukraine conflict and despite weak euro zone growth, SEB said.

The country's GDP rose by 3 percent last year, supported mainly by domestic demand and investments. Private consumption rose by 5.6 percent last year, the fastest pace since 2007.

Search for new export markets remains the main task for all three Baltic countries, Gitanas Nauseda, economist and adviser to the president of SEB bank in Lithuania, stressed.

"Producers of the Baltic countries have just started to discover alternative markets, therefore, temporary worsening of export and financial indicators is unavoidable in the three countries," Nauseda said.

SEB expects Lithuanian economy to accelerate to a solid 3.5 percent in 2016.

According to the bank, the energy sector will achieve a more secure situation, helped by a new liquefied natural gas terminal and electric power links that will radically decrease the country's dependence on imported Russian energy. Endit