Even in uncertain times, Estonia’s FDI inflow as a percentage of the GDP is the 4th-largest in Europe, thanks to the business legislation and government’s efficiency.
The growth in the deficit was due to the payment of dividends, while the increase in the foreign trade deficit resulted from a decline in exports.
In Latvia, the State programme for house purchase provides a boost to the price increase, lowering the effectiveness of the macroprudential policy.
The deficit on the CAB shrank 4.5 times, thanks to a dramatic plunge in the foreign trade and the increasing surplus on the balance of services.
The amount of payment transactions of EMIs and PIs grew strongly in Q1 2022 and was double the level of a year ago. Revenues grew 3.5 times.
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
As the price of almost all goods and services continued to increase, the scenario in Latvia is worsened by the transport sector.
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.
Lithuania’s Independence, a so-called Floating Storage Regasification Unit, offers a case study for those looking to pivot away from Russian gas.