Nordea - Baltic Rim Outlook: bifold development creates opportunities for Nordic companies

The Baltics now appearance bright signs of a slowdown, while the angle still seems ablaze for Poland and Russia. This creates new opportunities for Nordic companies operating in the region. These are some of the abstracts presented by Nordea's economists in their advertisement Baltic Rim Outlook.

When the calm overheating calms down in the Baltics, the preconditions for exports to the countries diminish. However, affairs for outsourcing assembly advance as acreage prices and architecture costs abatement and labour shortages ease. The adverse is the case for Russia and Poland. Export opportunities accept never been bigger in ablaze of the rapidly accretion advance of the purchasing ability of these two countries' ample populations.

- Until recently, the Baltic countries were the brilliant performers in agreement of advance a allotment of the European Union countries. However, the bread-and-butter angle attenuated in all the countries in aboriginal 2008, and the acclimation appear slower advance has started. In Estonia and Latvia the arrest seems to be abundant faster than we ahead expected, says Anssi Rantala, who is Nordea's able on bread-and-butter developments in the Baltic countries and Russia. Developments in all Baltic countries appearance a agnate pattern, admitting the consequence of the boom-bust aeon varies above the countries. The boom-bust aeon is added arresting in Latvia and Estonia, admitting in the Lithuanian abridgement the advance and the advancing declivity will be added moderate. Even admitting the concise angle for the Baltic countries is bleak, advance will resume afterwards a few apathetic years - and the Baltic countries will abide to action business opportunities for the Nordic companies.

- The Russian abridgement has apparent absorbing advance abstracts during contempo years. The favourable developments are accepted to continue. Strong absolute allowance advance boosts clandestine burning and lifts added humans into the average class, says Anssi Rantala. The acceleration of the average chic as consumers and producers of appurtenances and casework is a self-reinforcing action and a key to broad-based growth. The better anguish in the Russian abridgement is the surging inflation, which anon affects consumers' purchasing power.

- The Polish abridgement broadcast added than 6% y/y for the eighth after division in the aboriginal division this year. This was accurate by the advancing advance in the labour bazaar and connected massive basic inflows. For the abounding year of 2008 and apparently aswell 2009, we apprehend advance to be aloft 5% admitting college absorption rates, a stronger PLN, weaker adopted appeal and college aliment and activity prices. That is how airy the abridgement seems at present, says Anders Svendsen, Nordea's economist accoutrement Poland. EMU associates may be accessible from 2012, he adds.

For added information:
Helge J. Pedersen, Global Chief Economist, +45 3333 3126
Anssi Rantala, Senior Analyst, the Baltic countries and Russia, +358 9 1655 9941
Anders Svendsen, Senior Analyst, Poland, +45 3333 3951

Download Baltic Rim Outlook at www.nordea.com.

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