Upturn will gain momentum only gradually, says Nordea

Bank’s analysts see challenges to come for emerging Europe.

Analysts at Nordic bank Nordea see continued challenges for several emerging European economies during 2010.

In its latest Economic Outlook report, Nordea forecasts a moderate economic upturn but adds that it will only gradually gain momentum.

In Poland, the report says, public finances remain “the biggest macroeconomic risk”, with rising government debt meaning that membership of the European Monetary Union is unlikely before 2014 and planned privatisations happening more slowly than expected.

In Lithuania, meanwhile, the report points out that “only tentative signs of a recovery are visible”, and 2010 is likely to be “a difficult year” with the closure of the Ignalina power plant putting pressure on production and exports.