Baltic Archive

In March headline inflation rose by 1.1% over the month, marking a relatively sharp increase in prices compared to March in previous years. Despite that annual inflation slightly eased in March to 2.8%. Both external and internal factors determined..

In March annual inflation rose to 2.6% up from 2.1%, while monthly inflation stood at 0.9%. Prices of goods were 2% higher than a year ago, while prices of services grew by 4.3% (mostly due to rising costs of public services). Increase of monthly i..

Neighbouring countries' impact on the Estonian economy is waningFinland, Sweden, Latvia, and Russia – Estonian closest neighbours – contribute about one-fifth to Estonian GDP through exports.The share of the four neighbouring countries’ tourists’ e..

Climate change poses risks to financial stability and is thus within central banks’ mandates The Bank of England is in the lead; the Federal Reserve is farthest behind Central banks should step up research, improve disclosure and assess their own b..

In Tallinn, the HAI rose by 10.4 points to 161.9 as rapid wage growth outweighed growing apartment prices and interest rates.In Riga, the HAI improved by 12 points to 191.7 as wage growth outpaced apartment price growth. For new-project and renovat..

Economy heat index for all three economies stayed below long-run average All indicators showed rising temperatures in Estonia, while Latvia and Lithuania moved sideways Tight labour markets could potentially raise heat

In 2018, the average full-time gross wage amounted to EUR 1310, up by 7.3%, in a year. The average gross wage increased in all sectors. The average wage was the highest in ICT and finance. A rapid growth in the average wage is supported by a shorta..

Last year the average gross wage recorded the fastest growth in ten years. It increased by 8.4%, reaching 1004 euros. It was boosted by minimum wage hike (from 380 euros to 430 euros) and tightening labour market. The unemployment rate is at a ten ..

In the second estimate of fourth quarter GDP, seasonally adjusted quarterly growth was revised down from 1.6 to 1.3. This resulted in 3.7% annual growth in fourth quarter and overall 3.4% real GDP expansion in 2018. Consumption remained the main d..

Annual GDP growth in Latvia was 4.8% in 2018. It was a tad stronger than in 2017, the fastest growth in seven years and the fastest growth among the Baltic countries in 2018. It means that income convergence with the neighbours as well as other EU ..

2018 - another strong economic year in EstoniaIn 2018, Estonian GDP growth slowed to 3.9% in real terms and to 8.6% in nominal terms and was supported by domestic demand and strong foreign demand. The growth was still strong and only slightly excee..

The trends in earnings continued in fourth quarter of the 2018. Annual gross wage growth declined by 0.3pp to 9.7%. The gap in in growth rates between public and private sectors widened. Public sector wages grew 12.5% annually, while those of priva..

Rapid economic growth in 2018 has translated into an even tighter labour market, exacerbating labour shortages and maintaining rapid wage growth. The labour market continued to improve in a rapid pace in 2018 despite unfavourable demographic trends..

• In 2018, the employment rate increased even more and the unemployment rate dropped further. • According to Swedbank’s forecast, labour market should remain tight this year, so wage growth will stay rapid. Labour market remains tight Accord..

In January inflation eased to 1.7%, while monthly inflation stood at only 0.2% despite sharp increase in electricity prices. Interestingly, prices of public good and services increased by 5% while market prices increased only by 1.2% annually. Aver..

Labour market continued to tap into previously underutilised groups of population. The tightness of the labour market incentivises companies to look for employees among the young and the elderly. Similarly, previously inactive people seem to be dra..

The economic growth remained very strong in Latvia at the end of last year. According to the flash estimate, the quarterly GDP growth slightly decelerated, recording still strong 1.1% (seasonally and calendar adjusted) growth, and the annual growth..

Lithuanian economy grew at 3.5% (3.6% seasonally adjusted) annually in 2018, very much in line with our expectations. Economic expansion was supported by solid domestic consumption, active investments and surprisingly strong external sector in a wa..

Average annual inflation was 2.5% in 2018 driven largely by external factors. Transport and housing goods and services accounted for approximately half of the price growth, owing mainly to higher energy prices. Despite Brent crude oil price per bar..

Due to the retreat in the oil prices and Christmas sales prices decreased by 0.6% in December and annual inflation dropped to 1.9%. Prices of goods were 1% higher than a year ago, while prices of services grew by 4.3%. Housing, electricity and fue..

• Inflation amounted to 3.4% in December and for 2018 as a whole. • In 2019, price growth is expected to slow to 2.8% as energy prices should stabilise and the planned hike of the excise tax on alcohol is cancelled. Inflation stayed at 3.4% in 2..

The Baltic economies will greet the New Year in a balanced state Lithuania cooled slightly, while Latvia and Estonia are catching up Tight labour markets could potentially raise heat

The housing affordability index (HAI) increased to 134.3 in Vilnius, 186.0 in Riga, and 154.3 in Tallinn. In Tallinn, the HAI rose by 5.8 points in the third quarter of 2018, compared with the same period in 2017, as rapid wage growth outweighed gr..

No matter Brexit outcome, trade with the UK will continue but the magnitude of it will depend on future agreement. Over time, however, supply chains and trade patterns could change, making it harder to predict flows of goods and services. If a Brex..

Annual inflation rate eased slightly in November to 3%, growing above 3% in the two preceding months. Prices of both goods and services also grew by 3% on annual basis. The main drivers of annual price growth in November were transport, housing and..

In the third quarter, Estonian GDP growth accelerated to 4.2% yoy in real terms. Compared to the previous quarter GDP increased 0.4%, seasonally and working day corrected. In nominal terms, GDP increased 9.5% in the third quarter and 8.5% ytd.Econo..

Revised data show slightly lower growth than the flash estimate suggested in the third quarter of 2018. GDP grew by 4.7% in annual terms while seasonally and calendar adjusted growth was even stronger at 5.3%. As growth in construction eased (10%..

As we expected, quarterly GDP growth has been revised up by one decimal point to -0.3% (SA) in the second GDP estimate. Annual growth has clocked in at 2.4%, two decimal points higher than reported initially. Season and calendar adjusted annual gro..

In the third quarter, the average full-time gross wage amounted to EUR 1291, up by 7.5%, in a year. Median wage reached EUR 1000, +10.0%, over the year, according to the Tax Board. The average gross wage increased in all sectors, except for ad..

In the third quarter, the average gross monthly wage was at 1006 euros, up by 8% compared to the same period a year ago. The wage growth was largely driven by pronounced labour shortage, minimum wage hike at the beginning of the year (by 50 euros),..

Top candidates provide different direction for CDU in the future The government parties struggle in polls, while the Greens party surges Whoever wins, the new leader will face tough political and economic decisions The battle to inherit Angela M..

Annual gross wage growth decelerated very slightly to 10% down from 10.5% a quarter ago. Private sector wage growth slowed to 9.3% from 10.4% annually. Meanwhile public sector wages accelerated further to 11.3% annually. Net wages increased by 9%, ..

• Unemployment rate down to 7% • Employment up by 1.9% annually • Number of economically active up by 0.2% annually • Labour shortages remain elevated Ongoing economic expansion continues driving demand for labour. Labour market conditions tigh..

• The shortage of labour is on the same level as in the years of the previous economic boom.• During the next two years, according to Swedbank’s forecast, the gross wage growth should stay at 5-6%, employment rate will remain high and unemployment ..

Annual inflation accelerated to 2.9% in October compared to 2.4% in September. On a monthly basis prices grew by 0.6%. Core inflation excluding food, energy, alcohol and tobacco accelerated to 1.9% up from 1.8%. The main factor determining price d..

Despite the shrinking working-age population the labour market in Lithuania continues to surprise on the upside. The number of employed increased by 1.5%, compared to the same period a year ago, thanks largely to rising employment of men. The unemp..

According to the flash estimate, Latvian economy expanded by 4.8% in Q3 compared to the same period in the previous year (seasonally and calendar unadjusted data). Quarterly growth was exceptionally strong at 1.8% (seasonally and calendar adjusted ..

Lithuanian economy disappointed in the third quarter of 2018. Annual GDP growth decelerated from 3.8% in the second quarter to 2.2% in the third. In seasonally and calendar adjusted terms, in the third quarter GDP increased by 2.7% annually and dec..

The official GDP estimates come out with a substantial lag, but it is possible to determine the current level of economic activity using other indicators. Swedbank economists have developed a tool that allows to predict the current and near future ..

The Baltic economies are operating above their potential No overheating, but economic temperature is rising gradually Monitoring, fiscal prudence, and productivity-boosting reforms are necessary The Baltic economies are now fully recovered fro..

Annual inflation exceeded 3% for the first time in more than a year, reaching 3.2% in September. The main contributors to the annual inflation rate in the past few months have been prices of goods. Categories with the largest contributions to the p..

Annual inflation has rebounded to 2.4% from 2.1% in August. Compared with August prices grew by 1.3%. Several main factors determined price growth recently. First of all, prices of energy products are increasing globally. Automobile fuel and solid ..

Inflation rate has fluctuated between 3% and 4% in recent months. Annual change in consumer prices amounted to 3.7% in September. Among different product groups, the prices of everyday essentials, i.e., housing, food, transport, have been contribut..

Latvia’s labour market is showing some signs of overheating. Although competitiveness pressures are present, they are way below record highs seen in the pre-crisis period. The ongoing economic expansion has brought unemployment rate considerably..

The Baltics get closer to the Western middle class income standard, but income inequality remains an issueA strong and well-off middle class, a sign of lower income inequality, important for economic growth Middle class incomes have grown substanti..

The housing affordability index (HAI) increased to 184.8 in Riga and 131.7 in Vilnius, but decreased to 156.3 in Tallinn.In Tallinn, the HAI fell by 3.1 points in the second quarter of 2018, compared with the same period in 2017, as apartment price..

Annual inflation eased to 2.1% in August and was the lowest since January 2017. Annual core inflation (without food and energy) stood at a modest 1.5%. The growth of consumer goods prices slowed down to 1.6% in August, while the pace services price..

Revised data show even a bit stronger economic growth in the second quarter than the flash estimate suggested. GDP expanded by 5.3% in annual terms, but seasonally and calendar adjusted growth was at more modest 4.4%. Nominal GDP growth reached a w..

Estonian GDP growth accelerated to 3.7% in the 2nd quarterReal GDP growth in Estonia accelerated to 3.7% yoy in the second quarter of 2018. The growth was stronger than in the first quarter (3.3%). In the first half, GDP growth was 3.5% in real ..

• In the second quarter, the average full-time gross wage amounted to EUR 1321, up by 6.4%, in a year. • Swedbank expects gross wage to grow by 6.6% in 2018 and by 6.0% in 2019 • Consumption remains moderate Wage growth decelerated as expect..

Gross wage growth surged to 10.5% in the second quarter of the 2018 again breaking the record for the post-crisis period. The average net wage grew a bit more timidly at 9.5% annually because non-taxable income allowance for children was replaced w..

Is the housing market overheating?Although housing affordability in Estonia has improved, compared with the peak of the last real estate boom, it has stayed at the same level for the past four years.Households’ confidence in purchasing or buildi..

• Employment rose rapidly but only among the part-time workers • The unemployment rate decreased more than expected • The shortage of labour has reached the levels of last economic boom Employment rose rapidly but only among the part-time wo..

Limited impact on real economy from currently introduced sanctions, although some volatility in financial markets Recent weakening of the RUB and decline in stock market is probably an overreaction (i.e. not so much about the currently introduced ..

The rapidly growing economy and high wage growth did not go unnoticed in the labour market. The rate of unemployment dropped to 5.9% in the second quarter of this year and was 1.1 pp lower than a year ago. This was the lowest rate of unemployment s..

Annual inflation rate in July was 2.6%, a tad slower than in June. Although price growth differed across various categories, overall price growth of goods and services remained moderate and similar to that in June. Goods’ prices grew by 2.4% on ann..

Economic growth picked up to 5.1% in annual terms in the second quarter of 2018. However, note that it was partly contributed by larger number of working days. Calendar adjusted GDP grew at a more moderate pace, 4.2%. Moreover, adjusted data show a..

Annual GDP growth kept its fast pace in Q2 - the economy increased by 3.7%. In quarterly terms, the economy grew by 0.9% (seasonally and calendar adjusted). The main drivers of growths in the second quarter were most likely consumption and invest..

What is the current state of trade tensions? What is the most likely future scenario? How vulnerable are Baltic economies and what is the likely impact? Last year was marked with rising global economic growth, improving confidence and expectat..

June has marked the fastest annual inflation rate this year. Annual inflation reached 2.8% in June. Annual growth of goods’ prices accelerated to 2.5% while service prices grew by 3.3%, a similar rate as before. In the months to come annual inflati..

Sweden leads in environmental protection but lags Nordic peers in other areas No Nordic country on track to meet environmental goals in Agenda 2030 All Nordic countries perform well on governance and on social inclusion Swedbank’s Sustainabili..

The housing affordability index (HAI) increased to 182.0 in Riga and 152.0 in Tallinn, but decreased to 133.1 in Vilnius. • In Tallinn, the HAI rose by 5.9 points in the first quarter of 2018, compared with the same period in 2017, as very rapid wa..

Italian bond yields have come down, as the government has been approved by the president, but future policy remains very uncertain. Confrontation with the EU, reversing past reforms, expansion of fiscal deficit could again ignite fear and volatilit..

• Quarterly GDP growth at 1.6% (s.a.), annual growth at 4.2% (n.s.a) in the first quarter • Economic growth remains strong and broad-based, with only finance and transport sectors in red • Surge in construction and associated investment increase ..

Revised GDP figures show that the Lithuanian economy sustained the growth momentum and in annual terms increased by 3.7% in the first quarter of this year. Compared to the last quarter of 2017, GDP was 0.9% higher (in seasonally and working-day adj..

US steel and aluminium tariffs to worsen business sentiment, but small direct effect on growth in the Nordics and the BalticsThere are no winners in a trade war – tariffs will hurt the US as much as the EUThe direct effects on exports and imports a..

GDP growth in Estonia decelerated to 3.6% yoy in 1Q2018 in real terms. The slowdown was expected, as close to 5% growth in 2017 was above the potential, by far. Nominal GDP growth decelerated to 8%, but it’s still very robust.Labour shortage has..

• The growth of the average gross wage accelerated to 7.7%, over the year, in the first quarter of 2018. • Families’ assessment of their financial situation is the highest on record. Rapid wage growth continued in the first quarter, around 8%..

The annual average gross wage growth was the fastest since the financial crisis in 2009 and stood at 9.5% in the first quarter of the year. The average net wage grew a bit slower - it increased by 8.6% due to the fact that additional income tax red..

Strong economic activity supported further labour market tightening at the beginning of this year. The number of unemployed decreased by about 11 thousand or 12% in the first quarter of this year compared to a year earlier. The fall in the unemploy..

• Higher economic activity lifted employment. • The number of the inactive declined substantially and the unemployment rate grew due to a labour market reform. According to Statistics Estonia, employment increased by 0.6% despite a strong bas..

The unemployment rate stood at 7.2% in the first quarter of this year and was 0.8 pp lower than a year ago. Somewhat unexpectedly, the annual decline in the labour force eased to -0.8% and the decline in employment stalled (+0.1%). Despite rapid ec..

Annual inflation decreased to 2.0% in April with both prices of goods and services decelerating slightly on annual basis. Goods prices grew by 1.5% whereas service prices – by 3.3%. Global food prices have recently exhibited an upward trend owing..

In line with our expectations annual inflation continued to ease and stood at 2.3% in April. In annual terms, prices of consumer goods and services increased by 1.5% and 4.7%, respectively. Consumer prices were 0.6% higher compared to March - month..

The economic growth remained strong at the beginning of 2018. According to the first quarter flash estimates, the quarterly GDP growth was 1.7% (seasonally and calendar adjusted data), while the annual growth accelerated to 4.3% compared to 4.2% (n..

In the first quarter of this year real GDP increased by 3.6%, in annual terms. In quarterly terms GDP grew by 0.8% (season and working-day adjusted). Strong growth is supported by solid retail growth, which accelerated to 6.7% in the 1st quarter. ..

Estonian enterprises need to put more effort in to improve their productivity growth In a post-crisis period, the growth of Estonian labour productivity has been weakEstonian labour productivity is lower than majority of European Union member..

Inflation is steadily continuing its expected path of easing with the base effect of last year’s excise duty hikes dissipating. Annual inflation dropped to 2.7% down from 3.5% in February. In March prices were higher 0.4% compared to February, main..

Inflation decelerated from 3.1% in February to 2.8% in March as food prices rose less than in the previous month. Regulated prices of goods and services rose by 7.5% and non-regulated prices by 1.5%, over the year, in March. Food, alcohol, and ..

The housing affordability index (HAI) increased to 186.3 in Riga, and 129.9 in Vilnius, but decreased to 151.5 in Tallinn. • In Tallinn, affordability decreased slightly by 0.3 point in the fourth quarter of 2017, compared with the same period in 2..

Increasing Estonian exports’ market share in Finland will be more challenging Estonia’s exports to Finland are the most diversified among the largest trade partnersExported goods from Estonia have gained market share on the Finnish marketEsto..

In February, annual inflation rate declined for the sixth month in a row, reaching 1.8%. On monthly basis, prices grew by 0.2%. Service prices have once again taken over as the lead contributor to annual price growth. While goods’ price growth dece..

Annual inflation eased to 3.5% in February down from 4% in January. Month on month consumer prices dropped by 0.2%. Inflation is largely following the path of our forecasts. Annual growth of service prices decelerated to 5.1%, while prices of goods..

• Average gross wage growth at 7.9% in 2017 • Unemployment rate down to 8.7% in 2017 • Employment growth inched up in 2H 2017, compensating the fall in 1H 2017 • Labour shortage poses an increasing challenge to employers Labour market tightenin..

• The growth of the average gross wage decelerated to 6.5% in 2017. • Swedbank expects the average gross wage to grow by 6% and the real net wage by 9% in 2018. The growth of the average gross wage decelerated to 6.5% in 2017. The rapid gro..

Thanks to recovering global trade and still supportive domestic demand, last year the Lithuanian economy enjoyed the fastest growth since 2013. In real terms, GDP expanded by 3.8% in 2017 - exactly in line with our forecast. The domestic demand r..

The fourth quarter GDP growth was confirmed at 4.2% year-on-year (0.3% quarter-on-quarter). For the year as a whole, the real GDP expanded by 4.5%, which is the fastest pace in the past six years. Moreover, in terms of GDP volume the economy finall..

In 2017, Estonia’s GDP growth accelerated to 4.9% in real terms and to 9% in nominal terms. Economic growth was the fastest of last six years. The growth exceeded our expectations (our recent forecast in January was 4.4%). The growth was broad-base..

Tight labour market continues to support strong wage growth. Annual gross wage growth inched up to 7.5% in the fourth quarter. In 2017 gross wages grew at 8.5%, exceeding our expectations. Generally growth was quite strong across industries. Wage..

• Labour market has become even tighter. • Employment increased by 2.2% and the unemployment rate decreased further to 5.8% in 2017. Last year brought good news for Estonian employees. Higher economic activity lifted demand for labour. Employ..

Inflation has crept up a little in January and stood at 4% annually. Prices rose by 0.3% since December. As previously prices of services grew at a faster pace than goods, 5.3% and 3.6% respectively. Notably the change in prices of services has bee..

In January, monthly headline inflation was 0%, thus annual inflation rate stood at 2.0%. Goods’ inflation continued to retreat and goods’ prices grew by 1.5% on annual basis. Slowdown mostly owed to slower food price growth, which reflects global f..

The unemployment rate declined to 7.1% last year and was 0.8 pp lower than a year ago. This seems like great news before one takes a closer look. Apparently, the increase in the activity rate (76% for 15-64 year-olds) could no longer alleviate t..

Real GDP growth slowed to 4.2% year-on-year in the fourth quarter of 2017. Nevertheless, it was the second fastest rate of growth over the past five years. The strong figure, however, was largely due to base effects, as the quarter-on-quarter growt..

Economy has gained pace after a slump 3rd quarter. GDP grew 3.6% year-on-year and 1.5% quarter-on-quarter (Seasonally and working-day adjusted) in Q4. Strong run at the end of the year solidified a 3.8% GDP growth for 2017 - exactly in line with ou..

Sustainability Indicators assess progress towards UN Sustainable development goals Focus on sustainable development identifies business opportunities and highlights risks Sweden should speed up reforms to remain among the leaders, while the Balt..

After four years of low headline inflation, year 2017 brought faster price growth. In line with our forecast, average annual inflation accelerated to 2.9% in 2017. Food prices, especially dairy, meat and vegetable, rose by 6% in 2017 and accounted ..

Annual inflation decelerated to 3.9% in December, while in monthly terms, consumer prices did not change. Annual growth in the prices of both, goods and services, eased towards the end of the year, to 3.4% and 5.3%, respectively. The dissipating..

Inflation picked up last year due to higher commodity prices and an increase in excise tax rates. Higher excise taxes added 0.9 percentage point to inflation in 2017. Among different products and services, food and non-alcoholic beverages cont..

The housing affordability index (HAI) increased to 148.6 in Tallinn, 177.2 in Riga, and 124.8 in Vilnius.In Tallinn, affordability increased by 2.9 point in the third quarter of 2017 compared with the same period in 2016, as apartment price gro..

• Baltics at the top of EU 28 price growth as economic growth accelerates • Rapid wage growth is a blessing and a curse – notable service price increases in Lithuania and Estonia • Winter is not coming to Latvia – service inflation to heat up

Why did cryptocurrencies appreciate so much this year? Initial Coin Offering (ICO) – cheaper IPO, or a letter from the Nigerian prince? The future is likely to be shaped by regulators, not aficionados

For the third month in a row inflation slowly recedes. In November, annual inflation rate was 2.7%. Despite retreating inflation, it is considerably higher than a year before. In the eleven months of this year, annual average inflation was 3.0% (fo..

Annual inflation has not changed from October to November and was at 4.4%. Prices grew 0.3% month over month in November. Meanwhile, average annual inflation reached 3.5%. Prices of goods in annual terms grew 4%, while services price growth eased..

• Growth at its cyclical peak • Productivity is the key to income convergence in the Baltics • Sustainable development – where do we stand? • Universal basic income – utopia or an urgent necessity? Growth at its cyclical peak The upswing in global ..

The real GDP growth was confirmed at 5.8% YoY (nsa) – the fastest growth since 2012! Most likely, it is the fastest pace of growth within this business cycle. The quarterly growth was at 1.5% (swda). The size of the economy is close to the pre-cris..

In 3Q2017 Estonian GDP expanded 4.2% yoy and 0.3% qoq (swad) in real terms. In nominal terms, GDP increased by 8.9% yoy. During the first three quarters, GDP has increased by 4.8% yoy in real terms. The major contribution to the growth comes from t..

• Wage growth remains relatively high as labour demand increases more than supply. • Swedbank expects the average gross wage to grow by around 5% and the real net wage by close to 9% in 2018. The growth of the average gross wage accelerated in..

• Annual gross monthly wage growth at 7.5% in Q3 as labour market tightens • Wages up in almost all sectors • Payroll tax cuts and minimum wage hike to give additional boost to wage growth next year After surging 8.7% in the second quarter, the ..

Annual wage growth slowed down to 7.2% in the third quarter. The waning effect of minimum monthly wage increases was the main reason for the slowdown. Wage growth was also dragged down by sluggish wage growth in the public sector. Its wages grew..

• The employment rate reached the highest level in 20 years. • The unemployment rate declined to 5.2%. Higher economic activity reflects in the developments in the labour market. In the third quarter, employment grew by 2.0%, the number of une..

The unemployment rate declined to 6.6% in the third quarter of this year and was 0.9 pp lower than a year ago. Activity rate remained flat at 76.1% and thus did not alleviate the negative effect of the shrinking working age population on the labour..

In monthly terms, consumer prices rose by 0.2% in October, while annual inflation decelerated to 4.4%. Average annual inflation picked up to 3.3%. Annual growth in the prices of consumer goods decelerated from 4,4% in September to 4% in October. ..

In the third quarter 2017, Latvian real GDP expanded 5.8% YoY nsa (up 1.5% QoQ swda). It is the fastest rate of growth since 2012, and in terms of volume GDP is about back to its pre-crisis level of 2017. Growth is broad across all sectors with con..

In the third quarter of this year GDP was 3.1% higher than a year ago. Seasonally and working day adjusted annual growth was 3.4%, while quarterly growth was a meagre 0.1%. This is markedly slower growth than during the first two quarters of this y..

In monthly terms, consumer prices rose by 1% in September, while annual inflation accelerated to 4.8%. Average annual inflation picked up to 3%. Annual growth in the prices of consumer goods accelerated from 3.8% in August to 4.4% in September. ..

The housing affordability index (HAI) increased to 159.9 in Tallinn, 183.5 in Riga, and 129.4 in Vilnius. • In Tallinn, affordability increased by 0.2 point in the second quarter of 2017 compared with the same period in 2016, as wage growth gained ..

As we expected a slowdown in inflation rate in July was temporary. In August annual price growth picked up again and was 3.1%. Food prices contributed the most to inflation growth in August. Among food prices, butter has been in the spotlight rec..

In monthly terms, consumer prices remained stable, however, annual inflation surged to 4.4% in August. Meanwhile, the average annual inflation picked up to 2.6%. The effect of increased excise duties on alcohol is still observed, however the effect..

Hit most by great recession and rising house pricesUpcoming challenges: population ageing and tech revolution Negative effects on growth, public finances, and political stability In some respects, the current young Europeans can be thought of as..

In the second quarter the real GDP increased by 4% (not seasonally adjusted) year on year (YoY), recording the same growth rate as in the first quarter. The pick-up was seen in almost all sectors, except finance and insurance, and operations with r..

We expected continued robust GDP growth in the second quarter, but 5.7% yoy (1.3% qoq swda) was above expectations. As inflation has picked up, GDP nominal growth accelerated to 10.2% yoy. Statistics Estonia revised up GDP levels and growth rates o..

• Wage growth will remain relatively high as labour demand increases more than supply. • Nevertheless, the gap between wage and productivity growth rates will narrow this year. The growth of the average gross wage accelerated in the second q..

Nominal gross wages growth decelerated only slightly to 8.7%, while real net wages rose by 6% in the second quarter of this year compared with the same period a year ago. Wage growth in private sector continued exceeding that of the public se..

GDP accelerated due to strong domestic and foreign demand Labour market hit its limit, but credit and investment cycle has way to go High-value-added export sector rising from low levels but needs more favourable environment

• The labour market remained tight. • The unemployment rate increased due to a reform. In the second quarter of 2017, the unemployment rate was 7.0%, the employment rate 66.9% and the labour force participation rate 72% in Estonia. The labour..

Tax reform package passed by the Parliament on July 27 involves changes to the labour, corporate, and excise taxes, as well as measures to combat shadow economy. Overall it is a move in the right direction, with more to be done. The reform will hav..

Annual consumer price growth reached 3.9% in July. Meanwhile, the average annual inflation picked up to 2.3%. Higher prices of alcohol and tobacco (resulted by a hike in excise duties), dairy products, fuels and those of restaurant services contrib..

GDP growth in Latvia accelerated to 4.1% YoY in the second quarter (+4.0% YoY in the Q1) of 2017. Seasonally and calendar adjusted growth was even more impressive, i.e. 4.8%, as there were two working days less this year. Quarterly growth slightly ..

The Lithuanian government and the businesses can relax for now and enjoy their summer vacation – the Lithuanian economy continues growing at an accelerated pace. The Lithuanian GDP increased by 3.9% in Q2 of this year, compared to the same perio..

Job vacancy rate just above average, but annual growth amongst highest in the euro area Unemployment and vacancy rate curve suggests no crisis yet… …but job vacancy rates likely to increase further Annual growth of vacancy rate second highest in th..

Inflation accelerated to around 3% in the first half of the year in Estonia. The contribution of food and non-alcoholic beverages increased substantially in recent months. Food and non-alcoholic beverages amount to a quarter of household expenditur..

• Profitability remains a concern • Developments across subsectors vary • Challenges ahead Sales are on the rise, but profitability remains a concern Retail trade enterprises expect their sales to rise (by 6.1% in 2017, according to a re..

In Tallinn, affordability decreased by 7.3 points in the first quarter of this year compared with the same period in 2016, as price growth was more than double that of wage growth. In Riga, the HAI increased by 5 points as a price pickup was comp..

Annual consumer price growth decelerated marginally to 3.4% in May. Meanwhile, the average annual inflation picked up to 1.8%. Higher prices of alcohol (resulted by a hike in excise duties) and fuel, as well as those of restaurant services contr..

In the first quarter of this year the Lithuanian economy expanded by 3.9%, in annual terms, and by 1.4%, in quarterly terms (seasonally adjusted). This was the most rapid annual growth rate since mid-2014. This was also a relatively broad-based..

• Annual growth of the gross monthly wage at 7.2% in Q1 • Wages growing in almost all sectors The annual growth of the average gross monthly wage accelerated to 7.2% in the first quarter of this year after growing by 5% last year as a whole. Wage..

• 1Q2017 reports fastest GDP growth since 2012 • Broad cyclical upswing with almost all sectors reporting solid growth • Strong upside risks for GDP growth in 2017 to significantly exceed 3% Latvian GDP expanded by 4% YoY (up 1.6% QoQ) in 1Q 2..

Accelerated export growth and robust recovery of investments contributed to the GDP growthOn the output side, manufacturing, construction and domestic trade contributed the most We expect that GDP growth remains robust in 2017, but decelerates comp..

• The growth of average monthly gross wages slowed to 5.7% in the first quarter. • We expect gross wages to grow by around 6% this year. The growth of the average gross monthly wage decelerated from 7.6% in 2016 to 5.7%, over the year, in the f..

Nominal gross wages growth accelerated to 9.3%, while real net wages rose by 7.4% in the first quarter of this year compared with the same period a year ago. Wages in private sector increased by 10.4%, which was the highest pace since 2008. Constr..

Labour market performed better than expected in the first quarter. The labour force participation rate, i.e., the proportion of persons of working-age who are either employed or unemployed, reached a record level of 70.2%, considering seasonal fact..

Estonia is still among largest net beneficiaries from FDI in the EU Increased inflow of FDI may boost fixed capital formation in the near future FDI by country becomes more and more diversified Can FDI boost enterprises’ investments into fixed asse..

The unemployment rate increased in the first quarter of this year to 8.0%, but was 0.3 percentage points lower than a year ago. As activity growth is close to its limit and was too low to compensate for shrinking working age population, labour forc..

Rapid wage growth, but not for everyoneIncome inequality has picked up – action requiredMain culprits - weak social safety nets and changing economy Rapid wage growth, but not for everyone Average wage growth has been rapid, and wage inequality..

The Lithuanian annual GDP growth accelerated to 3.8% in the first quarter of this year. This was the most rapid annual growth rate since mid-2014. Meanwhile, in quarterly terms, the seasonally adjusted GDP increased by 1.4%.