Riding the Baltic rollercoaster

Concerns about the Crimea crisis risk taking the gloss off euro entry for Latvia and Lithuania, but it is the legacy of recession that still poses the biggest challenges for the region’s banking sectors

The inhabitants of the Baltic republics could be forgiven for feeling that fortune is not on their side. No sooner, it seems, had the three states fought their way back from double-digit recessions in the wake of the global financial crisis to re-emerge as regional growth stars – and, in the case of Latvia, as the 18th member of the eurozone – than the Ukrainian crisis prompted a fresh wave of forecast downgrades and sell recommendations.

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