Free market competition to break the double-digit inflation
Central banks are normally cited as the entities who fix the economy by disinflation, not those who broke the market by causing inflation.
Central banks are normally cited as the entities who fix the economy by disinflation, not those who broke the market by causing inflation.
While the global economic situation is deteriorating, the focus should be reversed on GDP growth and net exports, targeting core inflation.
In Latvia, inflation increased by 20.8% YoY, with the annual rate at 17.3%. Disinflation likelihood is less than in the US, given the ECB delay in raising rates.
While analysts predict disinflation, Poland faces increasing energy prices for households linked to higher indirect tax rates. And food prices continue to rise.
In Estonia, consumers have not been able to keep pace with inflation in recent months, and retail sales volumes have started to fall.
Lithuania’s economy keeps growing (1.3% in 2023). But the stabilization is fragile, and the balance of risks is negative. The global outlook is worsening.
The forecasts for Latvia see a persistently high degree of uncertainty. GDP is revised downwards to 2.1%, with a 5.6% contraction in household consumption.
In Poland, the risk of annual growth falling to negative is high. And building construction will be one of the weakest spots of the domestic economy in 2023.
In 2021 the USA was the main investor in the country. Last September, the deficit on the current account balance slightly narrowed.
Despite the strong scores in the regulatory and legal frameworks, Estonia has more people unemployed than before the pandemic.