News labeled eastern europe:

Economic growth has led to lower unemployment and combined with earnings from abroad and remittances this has added a significant amount of funds to households’ disposable income in all three Baltic countries, SEB’s latest Baltic Household Outlook shows.

SEB together with customers, partners and the Latvian public raised almost 4,300 Latvian lats for SOS Children’s Villages through a range of activities – including online games and sharing on social networks – from 17 November to 6 January.

SEB’s economists maintain their relatively positive view on Russia in the near term as long as the oil price stays at roughly the level as it is today. They forecast GDP to grow by 3.6 per cent in 2012 and 4.1 per cent in 2013, a minor downward revision for both years compared to the forecast made in November 2011.

SEB’s Estonian charity fund – Heategevusfond – this year facilitated distribution of Christmas gifts to 1,000 children living in shelters. The gifts were made possible by donations from over 1,500 people.

SEB’s latest Baltic Housing Affordability Index shows that the average Estonian can buy 49 square meters of housing in the capital Tallinn, whereas the corresponding figure for Latvia and Lithuania are 43 and 35 square meters respectively.

An early parliamentary election will be held in Latvia on 17 September SEB expects a change of government to a broad coalition which will involve the ruling centre-right and Western-oriented party, Unity. "We foresee no fundamental change in policy, with budget consolidation and euro zone membership in 2014 still a priority," Mikael Johansson, head of Eastern European research at SEB, says.

SEB has adjusted the full year 2011 and 2012 forecasts for the Lithuanian economy upward due to unexpectedly positive business and consumer sentiment and an upturn in domestic demand. However, as in the other Baltic countries volumes in private consumption and investments are still low. SEB’s experts now believe the Lithuanian economy will grow 6.5 per cent in 2011 and 5.0 per cent in 2012.

Local management teams at Fazer’s Amica units in Latvia and Estonia have agreed to buy the businesses in a management buyout transaction. SEB will provide financing worth 1.15 million euro to complete the deal. SEB in Latvia has also extended a credit and guarantee facility of 150,000 euro to promote further development of the Amica businesses in Latvia and Estonia.

SEB’s Latvian unit last week won an a gold medal for its efforts in 2010 to become a more sustainable company, including taking social responsibility.

It’s Sustainability Index – a joint initiative by the Employers’ Confederation of Latvia and the Free Trade Union Confederation of Latvia – that has evaluated 50 companies and organisations in the country. Only three could claim a gold medal, while 31 companies won silver and 16 a bronze medal.

Lithuania's economy grew by 6.9 per cent in the first quarter of 2011 compared to the same quarter a year ago, statistics released Thursday shows. The growth figured was inline with SEB’s forecast but exceeded the market’s expectations, which stood at 4.9 per cent. Mikael Johansson, head of Eastern European economic research at SEB, says it’s important to underline however is that there are still sizeable base effects behind the economic recovery. In sectors like retail trade and construction comparative figures were strongly depressed one year ago.

Responding to the wish of the people of Latvia to help the people of Japan in the wake of the 11 March earthquake and tsunami and its dire aftermath, the Japanese embassy in Riga has opened a donations account in SEB. No commission will be charged on money transfers to this bank account.

SEB’s Housing Price Index for Lativa declined in March after gradually increasing over the past six months. The number of respondents in a survey commissioned by SEB who say that they believe that housing prices will rise has decreased by six percentage points and now only 33 per cent expect housing prices to rise.

Eastern European economies will strengthen in 2011 on the back of greater household purchasing power and competitive exports, states SEB's Eastern European Outlook released today (23 March).

Overall, economic conditions will strengthen across the region over the next two years, with exports driving growth this year. Head of eastern European analysis Mikael Johansson, responsible for the report, says consumption and capital spending are awakening from their crisis-period hibernation as employment levels and wages improve, providing solid support for the growth.