OECD predicts stronger growth in the Baltics
The OECD (Organization for Economic Cooperation and Development) recently raised the GDP prediction in its latest forecast for all three Baltic states. According to the OECD, the region’s economic growth is expected to pick up in 2017, due to factors such as stronger growth in the euro area, Russian support of exports and the disbursement of EU funds, factors that can boost investment according to OECD. The organization also predicts that household consumption will be robust, supported by strong wage growth.
Latvia to grow most
Latvia is predicted to have the strongest economic growth among the three nations, with a predicted GDP growth of 3.5 percent this year (earlier prediction 3.0%) and the same growth next year. Baltic Horizon Fund has both office buildings and commercial retail centers among its properties in Latvia, very well positioned to benefit from future growth.
Estonia is predicted to grow by 2.6 percent this year (earlier prediction 2,4%) and 3.1 percent next year. The funds properties in Tallinn currently constitutes the largest part of the total portfolio, and consists of a good mix of office buildings and retail centers.
For Lithuania, a GDP growth of 3.1 percent this year is predicted (earlier prediction 2,7%) and 2.9 percent next year. In Lithuania, we can find Baltic Horizon Funds latest investment, the Duetto 1 office building, with strong tenants such as Lindorff and Pernod Ricard.
Baltic Horizon Fund benefits from the growth
It is clear that the Baltics are experiencing a strong growth, predicted to beat the OECD member state average growth of 2.1 percent this year. And it is also stronger than the 1.8 percent growth predicted in the euro area this year. Baltic Horizon Fund is benefitting from the overall growth and increased demand for commercial real estate from local and international companies who are increasing their presence in the region. Contact for us more information on how you can benefit from the growth by investing in our fund.