
Supply disruption and fewer energy resources: stagnation is the watchword
In Latvia, the second half of this year and the beginning of 2023 will see an even stronger slowdown of economic growth and energy resources.
In Latvia, the second half of this year and the beginning of 2023 will see an even stronger slowdown of economic growth and energy resources.
Elevated inflation is weighing on the propensity to consume and keeps undermining the purchasing power, while GDP growth decelerates.
The Estonian IT sector is the most competitive in CEE, thanks to its business environment and the implementation of online services.
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.