The Baltic from overheating to Hard landing
Latvia `Hard Landing' May Cause Baltic, Balkan Economic Tremors
The fastest-growing economy in the European Union is most at risk of a "hard landing'' among 15 emerging-market nations, according to Standard & Poor's. Analysts at Goldman Sachs Group Inc. predict "the adjustment is likely to be painful and to start soon.''
The impact threatens to extend beyond the Baltic region at a time when global markets are reeling from a credit collapse.
"Any turbulence in the Baltic countries would likely have a contagion effect on other emerging-market economies that rely on debt financing,'' according to Goldman analysts.
"In comparison to the other Nordic countries, foreign investments to and from Finland, in particular, have a more definite emphasis on the Baltic Sea states. As the economic focus of the Baltic Sea region is shifting further east, Finland's economic contacts in the area are estimated to strengthen even more," the Finnish government said
The housing market is highly sensitive to economic downturn. Could this be the trigger? or would it come from Spain, UK or China?