SEB Survey of CFOs: Lithuanians see twice as much danger to the global economy as Estonians do in the event of a ‘harsh Brexit’
In SEB’s October survey of CFOs of large Baltic undertakings, we asked about the main risks to the global economy at present. In Estonia and Lithuania, which are both highly dependent on exports, the most popular answer was increased protectionism and the threat of trade wars, mentioned by 58 per cent of Lithuanian and 56 per cent of Estonian respondents.
Latvians see risk in the Eurozone
Protectionism and trade wars were also at the top of the list of risks in Latvia, with 49 per cent of respondents citing them. At the same time, the development of a crisis in the Eurozone seemed to be a much clearer risk to Latvian undertakings, being mentioned by 64 per cent of respondents.
Notable differences between the Baltic Republics also appeared in assessing the risk of a so-called ‘harsh Brexit’ to the global economy. Namely more than half (51 per cent) of Lithuanian undertakings cited a ‘harsh Brexit’ as a major risk, which was the second biggest source of danger in the list among Lithuanians. At the same time, the corresponding indicator was only 24 per cent in Estonia, only coming in fourth. In Latvia, 37 per cent of respondents considered it a major risk to the global economy.
‘Estonian undertakings are also worried about a broader political crisis in western countries, being mentioned by one-third of the survey’s respondents. In Latvia and Lithuania the proportion was lower, less than one-fifth of respondents,’ commented Artjom Sokolov, Head of Corporate Banking at SEB. ‘It may also be noted that Estonian undertakings are more worried about the ECB’s monetary policy. Nearly one-fifth of respondents (19 per cent) noted that a possible political mistake by the central bank is a major source of danger. At the same time, 10 per cent of Latvian and Lithuanian undertakings shared the same opinion,’ he added.
About the survey: SEB organised the Survey of CFOs in the Baltic Republics for the seventh time. The survey focuses on the assessment of undertakings concerning the state of the economy, key problems, and opportunities in the business environment. This year, a total of 209 undertakings, each with a minimum annual turnover of at least EUR 20 million, participated in the survey.
Additional info:
Evelin Allas
Communications Manager
Marketing and Communications Division
SEB Pank
Phone: +372-665-5649
Mobile: +371-511-1718
Address: Tornimäe 2, 15010 Tallinn
E-mail: evelin.allas@seb.ee
