Ober-Haus Real Estate Annual Market Report 2010 Baltic Capitals
The Worst May Have Passed as the Cycle Now Turns (Slowly) Upward
Economy
GDP plummeted -14% in 2009, after dropping - 3% in 2008, as a lending boom turned to bust after eight years (2000 - 2007) averaging 7% GDP growth per year. The good news for 2010 is that the economy is now growing, with 2.6% GDP growth quarter-on-quarter in Q4 of 2009, and most analysts projecting 2% annual GDP growth in 2010. Inflation, as measured by the Consumer Price Index, was flat for 2009, coming in at just - 0.1%, easing fears of any serious price deflationary spiral. Projections for 2010 are also flat, at 0.5% inflation for the year.