
Expectations are not enough with inflation out of control
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.
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.
In Latvia, the second half of this year and the beginning of 2023 will see an even stronger slowdown of economic growth and energy resources.
Elevated inflation is weighing on the propensity to consume and keeps undermining the purchasing power, while GDP growth decelerates.
Estonia has to cope with very high inflation and a recession in the second half of the year when the economy will decline by 3%. Perfect economic storm.
Lithuania’s growth forecast is revised down. Increased prices of food and energy slow down growth in trading partners, when it’s necessary to cut market distortions.
Despite retail sales in Poland rising by 4.2% YoY in August, with the inflationary everything-bubble prospects for upcoming quarters are deteriorating.