This year Lithuania will grow by 2% and accelerate to more than 3% in 2025-26 driven by consumption and exports. However, risks arise from demographics and taxation.
The Estonian economy remained in recession in the first quarter, but Eesti Pank is more optimistic about the second half of the year as export rebounds.
Rail Baltica is a fully electrified double-track railway, with a 249 km/h design speed, that will reduce times between the Baltics and the rest of Europe.
In Poland, the increase in core inflation remains a problem. The return of market electricity prices won’t leave room for rate cuts.
The Polish-Korean Business Forum took place to strengthen the already solid business relations with a focus on high-tech, clean energy, and electric vehicles.
Timid manufacturing alongside a recovery in demand indicates weak exports, while pro-social government policies pump wages at the expense of productivity.
The IMF recommends that getting competitiveness back on the track of growth needs decisive fiscal consolidation and increasing productivity.
Last February recorded a rise in the surplus balance of services (+31.6% to €790.7 million) and a decline in primary income deficit (-50.6%).
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.