CEO Of Nordea Estonia: Estonian economy will fall until 2010

Sandra Taimre
September 3, 2008

CEO of Nordea Estonia, Vahur Kraft, said that the Estonian economy will fall until 2010 because both external and internal economic environment is not going to recover as fast as initially forecasted.

According to the Nordea forecast Estonian economy will grow 1 pct this year but declines to -0.5 pct in 2009 and will grew modest 2 pct in 2010, writes.

Similarly to Estonian economy also Latvian and Lithuanian economies will cool down after the consumption party. Nordea forecasts that Latvian economy will land hardest of all three Baltic countries whereas Lithuanian economy shows a smooth slowdown. Economic growth in Lithuania will slow down next year and at the same time will remain negative in Latvia.

Inflation in Baltic States will reach its peak in 2008 but will fall back to one-digit figures again next year.