Bank loans are the fire burning under the ashes
Difficulties in repaying loans can be a serious worry for households and businesses as the risks coming from Sweden are still high.
Difficulties in repaying loans can be a serious worry for households and businesses as the risks coming from Sweden are still high.
Timid manufacturing alongside a recovery in demand indicates weak exports, while pro-social government policies pump wages at the expense of productivity.
The IMF recommends that getting competitiveness back on the track of growth needs decisive fiscal consolidation and increasing productivity.
In Poland, the MPC will stick to its cautious approach and refrain from monetary easing this year: CPI inflation will start climbing again.
Latvia’s economy is projected to be sluggish: labour costs present risks to growth and competitiveness, while fuelling inflation.
Additional problems arise when the state softens the recession, widening the budget deficit with additional money into the economy.
Lithuania’s optimism assumes a rapidly increasing household real income: will wages keep rising faster than prices with no consequences?
Estonia should build on the competitive advantages of an efficient business environment and wide digital experience to escape stagflation.
Despite the wage gains in the region and retail sales up to 3%, Polish households remain cautious when making purchasing decisions.
In a deteriorating context, NBP faces the pro-inflationary impact of fiscal easing, regulatory decisions, and the uncertain economic outlook.