Nordea's Litmus Test Of A Solid Foundation For Latvia's Long Term Growth

Nordea is out with its "Economic Outlook" today. While the title of the Latvian comment is a bit of "muddle through" thing, but the key message for the hope of growth on page 29 seems to be right, though it may be not enough for the whole economy to print real growth this year:

Signs of a recovery are still scarce, but the worst plunge in the economy seems to be over. Domestic demand and investment are still exerting the main pressure on the economy, and hopes are focused on the export sector, which turned into an upswing last year. However, almost a third of Latvia’s exports goes to the other Baltic countries, which limits the short-term recovery potential of export demand. We thus expect the economy to show export-driven growth over the next year.

Click on chart to enlarge, courtesy of Nordea.

The latest review of Latvia's macroeconomics by SEB can be found here, but Swedbank's Economic Outlook here.