Lithuania’s growth forecast is revised down. Increased prices of food and energy slow down growth in trading partners, when it’s necessary to cut market distortions.
Despite firms only need certainties, EU keeps deducting from Poland as a result of not complying with the judiciary. But Warsaw could spoil the Fit for 55 climate packages.
Poland has launched the Baltic Pipe, the infrastructure which will deliver 6.5 billion cubic meters of Norwegian gas in 2023.
The culture of knowledge and experience sharing attracts more talent and creates the breeding ground for more innovation and European leadership.
In Latvia, the average remuneration has risen by 8.3% YoY, but this rate is insufficient to offset the price surge (+16.4%). Free-market allocation is much needed.
In Estonia, the consumer basket price was 24.8% higher YoY. Orders have declined, making harder to pass the higher costs to the final products. Competitiveness is at stake.
Latvia ranks 5th among EU members in VHCN. Last year important investment has been made in fibre optic communication innovation.
Even in uncertain times, Estonia’s FDI inflow as a percentage of the GDP is the 4th-largest in Europe, thanks to the business legislation and government’s efficiency.
The growth in the deficit was due to the payment of dividends, while the increase in the foreign trade deficit resulted from a decline in exports.
In May, inflation in Estonia touched 20% over the year, with higher energy costs being passed through to the prices of goods and services.