Goldman Researchers See Baltic Coming Off the Boil

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LONDON (HedgeWorld.com) - The "Baltic Boom" may be about to slow, according to new research from Goldman Sachs, published Wednesday [Nov. 7].

"The adjustment [to the Baltic Boom'] is likely to be painful and to start soon," Goldman said in a research note. The deepening global credit crunch may act as a trigger, particularly as the recent rapid growth in the Baltic economies - Estonia, Latvia and Lithuania - has, to a large extent, been financed by foreign borrowing.

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Goldman Researchers See Baltic Coming Off the Boil

As a result, current account deficits are increasing to an unsustainable level, Goldman said in the note. Through the second quarter of this year, current account deficit averaged 13% in Lithuania, 17% in E...

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