
Banks’ profit will struggle alongside the economic performance
Profit as a share of assets was around 60% higher in 2023, but now interest- and administrative expenses are likely to grow, as well as overdue loans.
Profit as a share of assets was around 60% higher in 2023, but now interest- and administrative expenses are likely to grow, as well as overdue loans.
With over 7,000 specialists and more than 260 companies, Lithuania represents Europe’s largest Fintech hub, now aiming at 35 million clients.
In a deteriorating context, NBP faces the pro-inflationary impact of fiscal easing, regulatory decisions, and the uncertain economic outlook.
Last November the downward trend in export goods continued (-8.3% to 12 months prior). The value of goods imports decreased by 13.8%.
Last November the surplus on the CAB decreased by 34.3%, where the trade balance suffers alongside exports (services -3.2%).
Market expectations of rapid disinflation remain, but underlying risks come from commodity costs, monetary supply, and trade protectionism.
Estonia is holding strong with €75M attracted FDI with energy & climate the hottest categories. Now the plan is to reach 500 DeepTech startups by 2030.
Estonia’s FinTech success (+42% income) is attributed to local digital infrastructure, people capital, and the world’s best tax system.
The core inflation is persistently higher than headline, while expansionary fiscal policy increases the pressure and weaken the competitiveness.
The current decline in Estonia’s exports is more a reflection of the weakness in foreign markets and the problems with competitiveness.