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.
Polish industrial production grew by 7.6% YoY, thus decelerating rapidly in recent months. The economy and the labor market must adjust to a new energy shock.
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.
The deficit on the CAB shrank 4.5 times, thanks to a dramatic plunge in the foreign trade and the increasing surplus on the balance of services.
In Latvia, inflation was on the rise in June (+19.3% YoY). Businesses transferred the cost increase to the prices and made consumers pay for it.
Upward pressure from commodity prices continues and symptoms of a marked economic slowdown are visible in the construction industry.
In May, inflation in Estonia touched 20% over the year, with higher energy costs being passed through to the prices of goods and services.
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
As the price of almost all goods and services continued to increase, the scenario in Latvia is worsened by the transport sector.