Lithuania's economy is currently the closest to the pre-crisis level among all Baltic economies – only 2.3% away from it, followed by Estonia's economy – 4.9%, and Latvia's economy – which is yet to grow 12.2% to reach the pre-crisis level.
All three Baltic economies are recovering. Latvia's economy, however, is recovering from the lowest level, allowing the country to achieve the best results. Latvia's economy is further away from the pre-crisis level because Latvia spent three years in recession, Estonia – two years, Lithuania – one year.
To a great extent, recession duration and depth depended on the scale of economic overheating and other related factors, therefore the situation in Latvia was the most dramatic.
SEB Bank economist Dainis Gaspuitis points out that, after two years of rapid growth, Latvia's growth rate in 2013 is expected to be slightly lower than in 2012. SEB bank predicts that Latvia's economy will grow 3.5% this year and up to 4.8% next year.
According to Gaspuitis, SEB banka's GDP growth forecast for Latvia has been lowered from 3.8% this past spring due to the falling manufacturing industry output.
Lithuania's GDP is projected to increase 3.2% this year and 3.5% in 2014, whereas Estonia's GDP is projected at 2% and 3.7% respectively.
