
Time to enhance productivity and cut the money supply
In May, inflation in Estonia touched 20% over the year, with higher energy costs being passed through to the prices of goods and services.
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.
In Poland, second-round effects thrive in an environment of expansionary fiscal policy, buoyant wages growth, and consumption boom.
In March the deficit in the CAB was up by 2.6 times due to an increase in the foreign trade deficit. The annual inflation growth rate stands at 15.6%.
The Latvian economy already returned to its pre-pandemic level in 2021, only thanks to household consumption, wage growth and savings.
In Lithuania, the inflation rate reached around 11% in early 2022, and heating bills are expected to increase by 50% to 60%.
Last December the surplus on the CAB contracted to €66.5 million due to a significant widening of the foreign trade deficit.
Riga is facing multiple challenges: energy prices, increasingly unemployed, a domestic market fall, global supply chain disruptions.
Lithuanian export of goods rose more rapidly than imports. The largest share of FDI was attracted by companies in financial and insurance activities.