"Unibanka": Latvia's GDP will outgrow the Estonian and Lithuanian rates in the coming years [19 Jan 2005]

 

Last year, Latvia saw the fastest GDP growth among the 25 EU countries and this trend will remain also in 2005 and 2006, outpacing the neighbouring Estonia and Lithuania, said the Head of the Market and Sector Analysis Department of Latvijas Unibanka, Andris Vilks, in a press conference on January 19.

Vilks voiced a forecast that in 2005, Latvia's GDP could reach a growth rate of 6.8 - 7.2%, while next year, the growth is estimated to decrease by a notch, staying at about 7%. According to Vilks, Lithuania's GDP growth will reach 6.8% in 2005 and decrease to 6.5% in 2006. Estonia, in turn, can look forward to a 6.2% GDP growth this year and 6.4% next year.

Although the GDP structure of the three Baltic states is quite similar, Vilks added, Latvia is experiencing the quickest development in service sector, while the growth and share of industry in the national economy is much smaller than in the neighbouring countries.

According to the estimates of "Unibanka", the Latvian branch of SEB, Latvia's GDP growth in 2004 was 8.2%, while the figures for Lithuania and Estonia are 6.8% and 6.1% respectively. In 2003, Latvia's GDP grew by 7.5%, Lithuanian GDP - by 9.7%, and Estonian - by 5.1%.

BNS (19.01.2005)

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