The reform agenda in the Baltics has been ambitious. To ensure fiscal sustainability, the adjustment burden undertaken ranged from an estimated 9–10% of GDP in Lithuania and Estonia to 14% of GDP in Latvia throughout 2009–2010 – something that the world had not seen before. And yet we did not get stuck in a protracted recession as sceptics predicted.
We have already reached a significant progress in regaining cost competitiveness, have made our economies structurally more resilient and are moving towards sustainable growth. So far I have addressed the Baltics as a region rather than the individual economies that they are and therefore it might seem that developments there were rather similar.