In Latvia, the average remuneration has risen by 8.3% YoY, but this rate is insufficient to offset the price surge (+16.4%). Free-market allocation is much needed.
Energy independence, the fight against the shadow economy, digitization, stability and rule-of-law are essential for Latvia’s competitiveness and FDI attraction.
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.
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
In Q1 employment in Estonia rose by 5.1% YoY, giving hope on the ability to absorb the shock of a fiscal and monetary tightening.
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%.
Lithuania’s Independence, a so-called Floating Storage Regasification Unit, offers a case study for those looking to pivot away from Russian gas.
Vilnius has achieved considerable results in energy supply from renewables, recycling and composting. However, emissions have increased by 50% since 2005.
Latvia’s GDP growth estimates for 2021 have been revised upwards to 5.3%, as well as inflation which is expected to reach 5% by the end of the year.
The ruling of the Constitutional Tribunal introduces aspects of a legal Polexit, harming the judicial cooperation between Polish and European courts.