Swedbank Ups GDP Growth Forecast to 6.7%
Major regional banker Swedbank has once again raised its estimate for Estonia's 2011 economic growth, this time pegging it at 6.7 percent.
In its latest economic report, released August 23, the bank said the change was prompted by "better-than-expected developments during the first half of the year and, consequently, an improved outlook for the second half."
This month, flash estimates from Statistics Estonia put the nation's second quarter growth rate at 8.4 percent, nearly level with the 8.5 percent Q1 growth that surprised observers in spring.
Swedbank's two previous forecasts, in January and April, had predicted 4.2 percent and 4.5 percent growth respectively.
The bank however foresees a slowing of export growth during the second half of this year which would have a dampening effect on GDP.
It also predicted that domestic demand would recover, allowing the country to maintain growth rates of 4.2 percent in 2012 and 4 percent in 2013.
Steve Roman