How fiscal proactivity fired Lithuania back to pre-Covid world
Lithuania’s fiscal response to the crisis has been timely and adequate: GDP contracted by only 0.8%, while real growth has reached 4.8% this year.
Lithuania’s fiscal response to the crisis has been timely and adequate: GDP contracted by only 0.8%, while real growth has reached 4.8% this year.
The Latvian central bank indicates an increase in GDP of 3.3% this year and 6.5% in 2022. Budget deficit and inflation forecasts are revised upwards.
Estonian GDP decline has actually remained at 3%, thanks to innovative progress in the digitalization of services and milder restrictions.
The increase in tax burdens would fail to cover the promised reduction in the tax burden, causing more uncertainty and reduced investment.
While private consumption accounts for 58% of GDP, Warsaw’s economic performance depends less on exports than its regional partners.
Unemployment has risen: consumption and investment face a higher level of uncertainty and a decline in capacity utilization induced by lower demand.
While the restrictions were similar to EU partners, the economic damage was much less: great opportunities from infrastructure, logistics and high-tech.
The 2020 recession is due to a fall in consumption representing 58% of GDP. The industry is expected to be driven by housing demand and major infrastructures.
While the reduction in foreign demand was responsible for two-thirds of the 2020 recession, industry and ICT will rebound this year.
Last year Poland recorded current account surpluses in each month, accounting for 18.4 billion euros. But retail sales fell 6.0% YoY in January.