The latest ‘Spring 2015 Property Outlook’ report by Newsec, which analysis property markets in the Baltic and Nordic countries, is predicting a slowdown in both regions.

Regarding the Baltics the report states: ‘We are revising down the growth outlook for the Baltic economies, mainly due to a deteriorating external environment. The escalating crisis in Russia, both economic and political, is mainly responsible for the sharply weaker exports. Also, business sentiments have been affected, leading to lower investments.’

However, on a positive note the report adds: ‘With Lithuania joining the European Monetary Union on January 1, all three countries now share the same currency and also benefit from the recent stimulus policies of the ECB. Domestic demand is expected to remain solid, on the back of improving labour markets, lower energy prices, and real wage improvements.’

Regarding the Nordic countries the report states that ‘prospects for the Norwegian economy deteriorated significantly last year due to a falling oil price.’ However, regarding Denmark it says ‘for the first time since 2011, Denmark is estimated to have reached positive growth last year, with the last five quarters showing an expansion. We estimate real economic growth at 0.9% for 2015.’

Finally, Newsec is revising down growth expectations for Sweden this year but expects its economy to pick up in 2016, with GDP growth of 3.0%.