Optimism lies only in the news, weak performance persists
Latvia’s economy is projected to be sluggish: labour costs present risks to growth and competitiveness, while fuelling inflation.
Latvia’s economy is projected to be sluggish: labour costs present risks to growth and competitiveness, while fuelling inflation.
Additional problems arise when the state softens the recession, widening the budget deficit with additional money into the economy.
Lithuania’s optimism assumes a rapidly increasing household real income: will wages keep rising faster than prices with no consequences?
With the fall in exports (18.4%) and imports (12.4%) of services, the surplus balance of services decreased by 25.5%.
In December, the surplus on the CAB increased thanks to a drop in the foreign trade deficit and a rise in the surplus balance of services.
The Bank of Lithuania published a comparison of interest rates on loans of Lithuanian and euro area credit institutions and term deposits.
Last November the surplus on the CAB decreased by 34.3%, where the trade balance suffers alongside exports (services -3.2%).
Multi-million projects for the construction of new industrial parks in Jelgava, Ventspils, Liepaja, and Daugavpils received the green light.
CEE inflation remains markedly higher than in the West, and is unlikely to get back on track till late-2025.
Relations with the EU represent the crucial point for the future of Warsaw, which has become the most reliable ally for the USA in the continent.