Major regional banker Swedbank has cut its estimate for Estonia's 2012 GDP growth to 2.7 percent, down from the 3.3 percent it predicted last month.

The bank lowered the figure citing weaker development in Estonia's main export markets during the first half of the year, it said in its latest economic outlook report.

The bank says in 2013 it expects Estonia’s economy to grow 4 percent a year.

atvia’s economy is expected to grow 2 percent this year and 3.2 percent next year. As for Lithuania, the bank expects it to grow 3.3 percent this year and 4 percent in 2013.

Estonian unemployment should fall to 10.7 percent in 2012 and to 8.6 percent next year.

Real wages are expected to grow 1.8 percent in 2012 and 2.9 percent in 2013.

Estonia’s inflation should be 3.2 percent this year and 3 percent next year.