There are no adequate financial instruments in Lithuania or they are not flexible enough: Vilnius must seek finance sustainable areas more quickly.
Digitalisation is a tool to simplify life: at the heart it’s the trust in the institutions and the conviction that everyone will reap its benefits.
Private consumption will remain strong thanks to rising incomes, pension indexation, higher minimum wages and a vibrant labour market.
Latvian GDP growth fell by -9.2% and the current account deficit is on the rise. Loans to the private sector are held back by an extensive informal sector.
EU leaders have reached a compromise to unlock the €1.8 tn Recovery Fund: any sanction could only start after approval by the EU Court of Justice.
Brussels is ready to endorse the alternatives and proceed without Warsaw and Budapest, whose subsidies are estimated at 3% of GDP.
Tallinn’s GDP will fall by 4.5%, while in 2021-22 will recover with the rebound in private consumption and investment. Public debt remains the lowest in the EU.
The diversified economic structure and low exposure to sectors affected by the pandemic allow Warsaw to contain the recession.
Before the pandemic outbreak, the economy was expected to slow down slightly (+3%), with a decrease in exports and investments.
A little bit of history: shock therapy impact and perspective.