The development of our economy is in the hands of our entrepreneurs, who have hardened enough in the crisis and things will be better in the new year, writes Indrek Nuume, head of corporate banking at LHV Pank and member of the board, in his response to Äripää’s poll of opinion leaders.
I am optimistic about the economic outlook for 2025. Compared to previous years, energy prices have been at a lower level, due to the additional capacities that have entered the market, and winter has also favored lower heating bills.
Another important reason is the significantly lower base interest rate level. According to the best knowledge, the six-month Euribor will fall below the 2% limit by autumn, and this will allow companies that used higher leverage to save on interest costs.
To the extent that Swedish and Finnish companies also benefit from this in a similar way, it means improved results for our exporting industry, which in turn is more strongly transferred to Estonia’s economic growth numbers.
The investment activity of companies will remain at a good level in 2025, and banks will keep their lending taps open.
I am not so sure about the further fall of housing loan margins, because the high capital requirements do not allow them to go to a significantly lower level when interest income falls (with a lower return on capital).
Äripäev asked opinion leaders: will 2025 be better than 2024? Will the economy really turn to growth and the livelihoods of people and businesses will improve? Looking ahead, what are you optimistic about, what are you worried about?
Source: www.aripaev.ee
