Export and Lithuania: trade deficit narrowed in August
The current account surplus of €168.5 million replaced the deficit recorded in July. The CAB surplus is the result of a surplus in the balance of services.
The current account surplus of €168.5 million replaced the deficit recorded in July. The CAB surplus is the result of a surplus in the balance of services.
ING estimates strong price pressure due to the continued rise in fuel, food and energy. In August, PPI accelerated to 9.5% YoY.
The Latvian central bank indicates an increase in GDP of 3.3% this year and 6.5% in 2022. Budget deficit and inflation forecasts are revised upwards.
In the country, which became the fifth European economy with an average GDP of 4% in 2009-19, per capita income grew at a rate of 5.3%.
With consumer demand expected to rise, supply will struggle: businesses face rising commodities prices, lack of components and staff shortages.
While private consumption accounts for 58% of GDP, Warsaw’s economic performance depends less on exports than its regional partners.
While the restrictions were similar to EU partners, the economic damage was much less: great opportunities from infrastructure, logistics and high-tech.
While the reduction in foreign demand was responsible for two-thirds of the 2020 recession, industry and ICT will rebound this year.
Last year Poland recorded current account surpluses in each month, accounting for 18.4 billion euros. But retail sales fell 6.0% YoY in January.
Great hope is placed on the active contributions of ICT technologies, where growth in Latvian industry this year could reach 3-4%.