SEB forecasts that the Estonian GDP will contract by 12% this year. At the same time, the inflation should decrase to 0.7%.
Ruta Eier, macro analyst at SEB also says that the gloomier global forecast also affect Estonia and the Baltic countries. Local demand is the lowest since several years while the governement cuts will not help.
Latvian GDP should also drop by 12% and Lithuanian by 9%. Inflation will be very low in the three countries while the unemployement rate will increase dramatically to 12% in Estonia, 15% in Latvia and around 11% in Lithuania.
The bank estimates that the jobless rate in Estonia will rise to 12 pct, in Latvia to 15 pct and in Lithuania to 11 pct.