OREANDA-NEWS. April 30, 2014. According to a survey conducted by SEB amongst CFOs of larger enterprises in the Baltic States, 77% of the respondents believe that the competitiveness of Estonia, Latvia and Lithuania will improve compared to the wider European economy by 2020.

The most optimistic assessment in the Baltic States was provided by Lithuanian CFOs, 84% of whom (versus 73% in Latvia and 69% in Estonia) are of the opinion that the competitiveness of the Baltic States as compared to the wider European economy will improve going forward.

Allan Parik, Head of SEB Baltic Corporate Banking: “Enterprises are still having to make an effort to improve their competitiveness, whereas results are precarious and even success is hard to maintain. Nonetheless, Baltic enterprises are convinced that the economies of Estonia, Latvia and Lithuania will become more competitive as compared to Western Europe over the next five years. This, in turn, will require heavy investments and a focus on innovations, since competitiveness cannot be improved at the price of low labour costs, emigration or the demographic situation. Thus, entrepreneurs should be more active in investing and in creating and introducing innovations.”

Baltic enterprises are also optimistic about the prospects for the wider European economy over the next five years. 74% of CFOs in Lithuania, 63% in Latvia and 61% in Estonia believe that positive trends will dominate the European economy until 2020. CFOs in Latvia are the most sceptical about the situation of the European economy. 29% offered a pessimistic assessment, whereas only 10% of managers in Lithuania and Estonia share the same opinion.

Riho Unt, Chairman of the Management Board of SEB Pank: “In spite of quite a few risks, CFOs of Baltic enterprises generally display a positive sentiment – both in terms of the future of their enterprises and more broadly as well. In another important conclusion, CFOs in the Baltic States have stated unambiguously that banks are accommodating when it comes to lending to enterprises. 71% of representatives of enterprises in Latvia, Lithuania and Estonia state that the attitude of banks on lending to enterprises has been either favourable or very favourable.”

SEB conducted a survey of CFOs of the largest enterprises in the Baltic States in late February and early March 2014. Approximately 200 enterprises from Estonia, Latvia and Lithuania participated.

The survey of CFOs in the Baltic States ascertains the positions of the managers of larger enterprises on topics such as business conditions over the coming six months, the most pressing concerns for enterprises in 2014, proposed changes in staff numbers, competitiveness of the Baltic economies and other issues.