Lithuania set to strengthen capital markets and attract more FDI
In March the deficit in the CAB was up by 2.6 times due to an increase in the foreign trade deficit. The annual inflation growth rate stands at 15.6%.
In March the deficit in the CAB was up by 2.6 times due to an increase in the foreign trade deficit. The annual inflation growth rate stands at 15.6%.
Although growth in employment accelerated, and the restrictions did not deliver any major setback, the labor force participation rate fell.
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
The Bank of Poland takes its main rate to 4.5%, projecting 6.5% this year and 7.5% in 2023. Meanwhile, companies are passing higher costs on to CPI.
The conflict in Ukraine has created another excuse to blame inflation on oil and natural gas, rather than the increase in the money supply.
Household consumption will keep sustaining the Polish economic growth o\in 2022, and high producer prices will be passed on to final consumers.
The Latvian economy already returned to its pre-pandemic level in 2021, only thanks to household consumption, wage growth and savings.
In Lithuania, the inflation rate reached around 11% in early 2022, and heating bills are expected to increase by 50% to 60%.
Following a record GDP growth (8.5%) in 2021, the Estonian economy will slow in 2022, still maintaining a strong pace (+4%).
GDP and consumption booms continue, but price-wage spiral too, as consequence of expansionary economic policy in recent years.