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Economic Research

Swedish Banks: Fewer Risks in the Baltic Region

The health of Sweden’s banking sector came under scrutiny in the wake of the global financial crisis, especially due to the exposure of two large banks—Swedbank and SEB—to the hard-hit Baltic economies (Estonia, Latvia and Lithuania). However, the economic situation in the Baltics has improved and RGE expects the region to grow by 3.4% on the back of the performance of exports, supported by a process of internal devaluation.

At the same time, the risk of external devaluation has significantly decreased, as Estonia has joined the eurozone and the economic outlook in the region is[...]

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