- Françoise Le Gall, L. Psalida, Pietro Garibaldi, Julian Berengaut, Jerald Schiff, Kerstin Westin, Augusto López-Claros, Richard Stern, and Dennis Jones
- Published Date:
- November 1998
© 1998 International Monetary Fund
Production: IMF Graphics Section
Figures: Sanaa Elaroussi
Typesetting: Julio R. Prego
The Baltic countries: from economic stabilization to EU accession / by Julian Berengaut… [et al.].—Washington, DC: International Monetary Fund, 1998
p. cm.—(Occasional paper, ISSN 0251–6365 ; no. 173)
Includes bibliographical references.
1. Baltic States — Economic Policy. 2. Baltic States — Economic conditions 3. Fiscal policy — Baltic States. 4. Monetary policy — Baltic States 5. Structural adjustment (Economic policy) — Baltic States. 6. Economic stabilization — Baltic States. 7. Foreign exchange — Baltic States. I. Berengaut, Julian, 1950. II. International Monetary Fund. III. Series: Occasional paper (International Monetary Fund) ; no. 173. HG243.B2 1998
(US$15.00 to full-time faculty members and
students at universities and colleges)
Please send orders to:
International Monetary Fund, Publication Services
700 19th Street, N.W., Washington, D.C. 20431, U.S.A.
Tel: (202) 623–7430 Telefax: (202) 623–7201
The following symbols have been used throughout this paper:
… to indicate that data are not available;
n.a. to indicate not applicable;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 1994–95 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1994/95) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This occasional paper provides an overview of economic developments and major policy challenges in the Baltic countries since 1994–95, focusing on the period 1995–97. During that time, the Baltic countries moved beyond the first stage of transition, which had emphasized financial stabilization and the revival of economic growth. In the second stage, the Baltic countries had to address policy challenges stemming from the choice of exchange rate regime, fiscal management, development and supervision of their financial systems, strengthening the private sector, and preparing their economies for integration with the European Union. The contributions to this paper relied in large part on the work that was undertaken by the staff of the Baltic Division of the European II Department in the context of discussions with the authorities on use of IMF resources and Article IV consultations.
The study was a collaborative project directed by Julian Berengaut with assistance from Augusto Lopez-Claros and Odd Per Brekk. Helpful suggestions were received from John Odling-Smee and Thomas Wolf. In addition, the authors are indebted to Constance Strayer and Lilian Immers for secretarial assistance and to Linda Galantin and Xiaofen Chen for research assistance. Juanita Roushdy of the External Relations Department edited the report and coordinated its production for publication.
The opinions expressed are solely those of the authors and do not necessarily reflect the opinions of the IMF staff, Executive Directors, or the authorities of the Baltic countries.
List of AbbreviationsBFTA
Baltic Free Trade AreaBIS
Bank for International SettlementsBRO
Baltics, Russia, and other countries of the former Soviet UnionCBA
Currency board arrangementCIS
Commonwealth of Independent StatesCIT
Corporate income taxCMEA
Council for Mutual Economic AssistanceCPI
Consumer price indexEBRD
European Bank for Reconstruction and DevelopmentEFF
Extended Fund FacilityEFTA
European Free Trade AssociationEMS
European Monetary SystemEMU
European Monetary UnionERM
Exchange rate mechanismEU
Foreign direct investmentGATT
General Agreements on Tariffs and TradeGDP
Gross domestic productIAS
International Accounting StandardsICG
International Monetary FundMIP
Multi-Annual Indicative ProgramNDA
Net domestic assetsNTB
National Tax BoardOECD
Organization for Economic Cooperation and DevelopmentPAYG
Personal income taxSDR
Special drawing rightVAT
World Trade Organization