Only real growth and exports will set solid standards
Economic growth is still based on one pillar, and that’s consumption. With a persistently high core inflation, the question is: for how long?
Economic growth is still based on one pillar, and that’s consumption. With a persistently high core inflation, the question is: for how long?
In the first semester of 2024, 28 investment projects have been implemented in Latvia, worth €263m to the economy and 1,245 new jobs.
Vilnius’ strategy on defense led to 14 large-scale projects within the Green Corridor worth nearly 4,000 jobs and more than EUR 1.25B in investment.
Latvian government launches a school program to include traditional rye bread in the daily meals of pupils from kindergarten to the entire first cycle.
With government funding being increased alongside the decline in competitiveness, budget deficit and debt will only widen.
In Poland, construction output (-8.9% YoY ) was weaker than expected, while retail sales data indicates that sentiment remains cautious.
GDP growth in Q2 2024 was close to 3% YoY only thanks to consumption. Solid market economy will be back only upon the expiration of minimum wage policy.
Despite the deficit in May, a current account surplus of 0.8% of GDP is forecasted for 2024 thanks to the EU support and domestic demand.
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.