Capital Economics Raises GDP Outlook for Baltic Region

The economies of Estonia, Latvia and Lithuania are recovering from the European Union’s deepest recessions faster than previously estimated as manufacturing picks up and the financial industry improves, Capital Economics said.

Estonian gross domestic product will probably rise 3 percent this year, compared with a previous estimate for a 1 percent contraction, London-based Capita said in an e-mailed note today. Lithuania’s economy will register zero growth, compared with a 2 percent contraction forecast earlier, whileLatvian GDP will fall 0.5 percent rather than 3.5 percent.