Stagflation is the price of superseding efficiency with political agenda
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
Lithuania’s Independence, a so-called Floating Storage Regasification Unit, offers a case study for those looking to pivot away from Russian gas.
The Bank of Poland takes its main rate to 4.5%, projecting 6.5% this year and 7.5% in 2023. Meanwhile, companies are passing higher costs on to CPI.
As coal has the biggest potential to lower gas demand, Poland wants to use it to produce electricity after 2049 to bolster its energy security.
The conflict in Ukraine has created another excuse to blame inflation on oil and natural gas, rather than the increase in the money supply.
Household consumption will keep sustaining the Polish economic growth o\in 2022, and high producer prices will be passed on to final consumers.
The Latvian economy already returned to its pre-pandemic level in 2021, only thanks to household consumption, wage growth and savings.
In Lithuania, the inflation rate reached around 11% in early 2022, and heating bills are expected to increase by 50% to 60%.
Following a record GDP growth (8.5%) in 2021, the Estonian economy will slow in 2022, still maintaining a strong pace (+4%).
NATO’s Achilles heel in the Russia-Ukraine war. Beware of Kaliningrad, Russia outside Russia, a crossing point between Europe and the three Baltic countries.