OREANDA-NEWS. March 28, 2014. One of the largest banks in Estonia, SEB, has cut its economic growth forecasts to just 0.5 percent, saying the recovery has been pushed back a year.

“Estonia's strongly export-dependent economy will be squeezed not only by slower Russian growth but also sluggish economic performance in Finland and a continued decline in public sector investments this year,” SEB said in a press release.

The bank predicts a 2.5 percent increase in GDP next year.

Other banks still have high hopes for the nation's economic growth, with Nordea predicting a 2.8 percent increase in a statement two weeks ago, while Swedbank and the Estonian Institute of Economic Research both predict 3 percent.

SEB forecasts neighboring states will continue to struggle, although expecting all, including Russia (1 percent growth) to outpace Estonia.

Last year's economic growth was 0.8 percent in Estonia.