Baltic states to show slowest economic growth - Coface

Published date16 May 2022
Publication titleLETA

RIGA, May 16 (LETA) - The Baltic states are expected to show the slowest economic growth, considering their trade ties with Russia, international credit risk insurer Coface representatives informed LETA.

Over the past two years, different economic processes, support measures and legislative changes have affected solvency trends in Central and Eastern European regions. The pandemic promoted economic downturn at 4 percent.

Even though the number of insolvency cases in the region dropped, this has been because of the large-scale support measures to households and companies. Now all Central and Eastern European countries, most beleivably, will support from indirect consequences related with Russia's invasion in Ukraine, said Coface.

In 2021, the region saw a positive growth at 5.5 percent, but this year it is expected to drop to 3.2 percent.

last year, seven countries in the region saw a larger number of insolvency cases than in 2020 - Bulgaria, the Czech Republic, Hungary, Lithuania, Poland, Romania and Slovakia, while five countries saw a drop in the number of insolvency cases - Croatia, Estonia, Latvia, Serbia and Slovenia.

Coface reported that the number of insolvency cases in Latvia dropped by 30.93 percent from 2020. Estonia saw a drop of 18.79 percent, while Lithuania reported a rise by 0.25 percent.

Coface Baltic states manager Mindaugas Sventickas said that the global economic situation in the past two years has created a...

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