Labor productivity is the real stimulus for economic rewiring
In Q1 employment in Estonia rose by 5.1% YoY, giving hope on the ability to absorb the shock of a fiscal and monetary tightening.
In Q1 employment in Estonia rose by 5.1% YoY, giving hope on the ability to absorb the shock of a fiscal and monetary tightening.
Although growth in employment accelerated, and the restrictions did not deliver any major setback, the labor force participation rate fell.
GDP growth projections for 2021-22 have been revised downwards, hit by shortages of materials, equipment, labour and rising energy costs.
In Latvia, real GDP has decelerated, hit by production and supply disruptions. The growth of purchasing power is uneven and exceeded by wages.
The Polish economy continues to grow, driven by two engines: industry and services. Next year, demand and wage pressure will be the key drivers of inflation.
Many unemployed have a background in sectors affected by the pandemic: the skills of job seekers often do not correspond to the new needs.
Latvia’s GDP growth estimates for 2021 have been revised upwards to 5.3%, as well as inflation which is expected to reach 5% by the end of the year.
Rulers in Warsaw are undermining the independence of courts, media and NGOs. Forgetting that the primacy of European laws is a key principle of the integration.
Lithuania’s fiscal response to the crisis has been timely and adequate: GDP contracted by only 0.8%, while real growth has reached 4.8% this year.
Estonian GDP decline has actually remained at 3%, thanks to innovative progress in the digitalization of services and milder restrictions.