Export and housing down amid rising costs of credit
Upward pressure from commodity prices continues and symptoms of a marked economic slowdown are visible in the construction industry.
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.
In Poland, second-round effects thrive in an environment of expansionary fiscal policy, buoyant wages growth, and consumption boom.
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
The Bank of Poland takes its main rate to 4.5%, projecting 6.5% this year and 7.5% in 2023. Meanwhile, companies are passing higher costs on to CPI.
The conflict in Ukraine has created another excuse to blame inflation on oil and natural gas, rather than the increase in the money supply.
Household consumption will keep sustaining the Polish economic growth o\in 2022, and high producer prices will be passed on to final consumers.
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.