The Crisis and Economic Recovery in Baltic Countries
Gediminas Macys

Abstract
This paper analyses the crisis and economic recovery in three Baltic countries, Estonia, Latvia and Lithuania. Using macroeconomic data for the three countries over a 12-year period, 2005-2011, the paper examines the factors leading to- and out the crisis, the policy responses to the crisis, an evaluation of their recovery and the lessons that can be learned. The present analysis undoubtedly shows that Estonia has passed the crisis due to excellent readiness with least losses, and it was valued at the admission to the EU Euro countries union. What about other two countries? They have passed the crisis with huge losses. Policymakers in all three countries are now under pressure to act. What after-crisis policy strategies are under choice from a long-term perspective? The paper concludes with an outline of key lessons for policy makers from the experience of the three small countries.

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