Monday, 26 January 2009
Building Permits: No Improvement Ahead
Building permits have been plummeting 25% compared to the same period of last year. Undoubtedly, it clearly points to further deterioration ahead for residential and commercial markets.
Unless there is a significant pick up of those figures, I will advise to stay away from any investment in any related sectors (housing, furniture business, lift business, materials etc...).
"With the crash of the housing and construction boom, unemployment skyrocketed between December 2007 and November 2008, from 5.7 percent to 9 percent for Latvia, 4.3 percent to 7 percent for Lithuania and 4.1 percent to 8.3 percent for Estonia.
The financial crisis in the Baltics now threatens to spread to the main source of most of the foreign capital in the region: the Scandinavian Banks."
To just highlight that a key market that has grown tremendously in the past 5 years is now clearly slowing to levels not observed since 1992.