Baltic Archive

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%.

Annual consumer price growth accelerated to 3.1% in March, while average annual inflation picked up to 1.4%. Monthly inflation spike was caused by higher excise duties, which increased the prices of alcohol. Higher alcohol and fuel prices also cont..

The die is cast - the next move is the EU'sLimited effects of Brexit on the Baltic economies, so farBaltic interest - strong EU

In Tallinn, affordability decreased by 1.6 points in the fourth quarter of last year compared with the same period in 2015, as price growth outpacednwage growth. In Riga, the HAI increased by 25.5 points as prices and interest rates decreased. In..

• Average wages grew in all economic sectors. • We expect the growth of average gross wages to slow from 7.6% in 2016 to around 5% in 2017. The growth of average gross wage accelerated to 7.6% in 2016. Net average wages grew rapidly too, by..

According to revised GDP figures, the Lithuanian economy grew more rapidly in the fourth quarter of last year and in 2016 than previously estimated. The annual real GDP growth accelerated to 3.2% in the fourth quarter of last year (prev. 3%), wh..

According to the revised data of the Central Statistical Bureau of Latvia, GDP growth was +2%. As expected, investment has undergone the largest revision: even though the gross fixed capital formation declined by about 11% last year, it is much les..

In 2016, economic growth reached 1.6% in Estonia. Compared to 2015 it is a 0.2 percentage point increase, but nothing to be too proud of yet. Nominal growth of GDP accelerated from 2.5% in 2015 to 3.3% in 2016. In the last quarter of 2016 Estonian ..

• Average monthly nominal gross wage growth 5% in 2016 • In the Q4 the wage growth accelerated to 5.6% year-on-year • Household purchasing power growth 4.6% on average in 2016 The average monthly nominal gross wage growth slowed to 5% in 2016 co..

In 2016, non-financial sector profits decreased 10% in Estonia. Profits decreased third year in a row. Robust wage growth has contributed to the decrease in corporations’ profits The major share of the decrease in profits came from manufacturing, r..

Nominal gross wages increased by 8.7%, while real net wages rose by 7.6% in the fourth quarter of the last year compared with the same period a year ago. Wage growth continued to be driven by minimum wage hike and higher non-taxable income thre..

• The unemployment rate down to 9.3% in 4Q 2016 (vs. 9.8% a year earlier), on average 9.6% in 2016 (vs. 9.9% in 2015) • Employment down by 3 thsd or 0.3% last year• The unemployment rate expected to decrease more rapidly this year, to about 8.5% o..

• Labour market remained tight in 2016. • Employment is expected to marginally decline and the unemployment rate to grow in 2017. In 2016, the labour force participation rate, the share of the labour force in the working-age population, incr..

In January consumer prices increased by 0.3% compared with December and were 2.3% higher than a year ago. Most of the increase was due to more expensive food products and alcoholic beverages, but housing costs and most of the services were also mor..

Consumer prices increased by 0.1% in January compared to December last year and were 2.9% higher than in January 2016. This marks the highest annual monthly inflation rate since mid-2011. 1.9% higher food prices and 4.1% higher fuel prices contribu..

The unemployment rate increased marginally in the fourth quarter of last year - to 7.6%, but was 1.2 percentage points lower than a year ago. Meanwhile, the unemployment rate for the whole last year averaged at 7.9%. The activity rate of 15-74 y..

• GDP growth in the Q4 accelerated to 2.1% (yoy, nsa), 1.6% for the whole year • The low point is past, growth will speed up close to 3% in 2017 • Structural reforms can ensure more rapid and sustainable growth According to the flash estimate of th..

The Lithuanian economy surprised on the upside in the fourth quarter of last year as GDP picked up by 3%, in annual terms. Quarterly seasonally adjusted growth accelerated from 0.4% in the third quarter to 1.3% in the fourth quarter. GDP increas..

Greater trade integration benefits overall welfareGlobal trade has slowed recently because of cyclical and structural reasonsProtectionism would hamper global economic growth – small and open economies, e.g. the Baltics, have most to loseNo quick a..

Consumer prices increased by 0.6% in December 2016 compared to November in the same year. Thus annual inflation in December accelerated to 2.2%. On a monthly basis, food prices grew by 1.3% and contributed the most to the increase. Rise in heati..

Annual consumer price growth accelerated to 1.7% in December. Higher prices of food products (dairy products, meat), alcoholic drinks (beer), fuels, tobacco products as well as restaurant services contributed the most to annual inflation. In mon..

Consumer price index increased by 0.1% in 2016. Higher excise taxes on alcohol, tobacco, and motor fuels contributed positively, while cheaper energy had the biggest negative impact on prices. The prices of alcoholic beverages and tobacco were arou..

Contraction is temporary Residential sector is stronger, at least in Estonia and Lithuania Construction costs will rise, but export potential is there

In Tallinn, affordability decreased by 0.8 point in the third quarter this year compared with the same period in 2015, due to a slight increase in interest rates as price growth was equal to wage growth. In Riga, the HAI increased by 2.3 points a..

Statistics Estonia revised up to 1.3% its second estimate of the third quarter yoy GDP real growth in Estonia (flash estimate was 1.1%). Compared to the previous quarter, GDP grew by 0.2% (swda). Economic growth has decelerated a bit this year - du..

Consumer prices increased by 0.2% in November compared to October this year and were 1.3% higher than in November 2015. This marks the third consecutive month of positive annual inflation and the second – with annual inflation of at least 1%. On ..

• Mind the risks to long-term growth • Exports hold the key to future growth in the Baltics • The services sector – stronger, smarter and more diversified Mind the risks to long-term growth Russia has exited recession and now all the Baltic Sea reg..

In 3Q 2016 real GDP grew by only 0.3% compared to the year ago (up 0.2% against the second quarter of 2016, according to seasonally and working day adjusted data). The key reason for this poor data is the decrease in investment activity, which is m..

Annual GDP growth decelerated to 1.7% in the third quarter of this year. Seasonally and working day adjusted quarterly growth decelerated from 0.4% in the second quarter to 0.1% in the third quarter. Household demand remained the main driver of gro..

Nominal gross wages increased by 7.9%, while real net wages rose by 7.4% in the third quarter of this year compared with the same period a year. Wage growth continued to be driven by minimum wage hike and higher non-taxable income threshold as o..

• Wage growth remained rapid in the 3rd quarter at 7%, over the year. • We expect average gross wage to slow to around 5% in 2017. In the 3rd quarter of 2016, the average monthly gross wage was 1,119 euros in Estonia, up by 7.1% over the year. ..

• Employment decreased by 1.2%, over the year, in the third quarter. • The unemployment rate jumped to 7.5% in the third quarter. • Employment is expected to marginally decline and the unemployment rate to grow in 2017. Changes in the third qua..

Economic growth in Estonia continued to be weak in the 3Q. According to the flash estimate, Estonian economy grew 1.1% yoy and 0.2% qoq (seasonally and calendar adjusted). The GDP has increased 1.1% yoy during the first three quarters. We shall pro..

Unemployment dropped to 7.5% in the third quarter this year – 0.8 pp lower than a year ago. Activity rate remained high and labour force increased despite contracting working age population over a year. Annual employment growth slowed down from ..

Protectionism harmful for small open economiesFinancial market uncertainty likely to lastNordics & Baltics have strong fundamentals to weather storm

• 0.8% (nsa) yoy • 0.5% (swda) qoq According to the flash estimate, the year-on-year GDP growth rate was only 0.8% (nsa) in Q3, down from 2.1% seen in the Q1 and Q2. The economic growth was surprisingly weak and well below our forecast. Even though..

GDP growth disappointed again and according to the flash estimate economy picked up by 1.7% in the third quarter of this year compared with the same period a year ago. Quarterly growth decelerated from 0.4% in the second quarter to 0.1% in the ..

• Estonia has been an attractive tourist destination • Growth despite fewer visitors from Russia and Finland • Challenges and opportunities in 2017 Estonia has been an attractive tourist destination Estonia has been rather successful..

Consumer prices decreased by 0.7% in August compared to July, but remained unchanged compared to August last year. After a small increase in annual inflation in July (0.1% yoy), consumer prices enter the twilight zone in August with 0% annual infla..

Annual consumer price growth accelerated to 0.8% in August, while average annual inflation picked up to 0.4%. Higher prices of lottery tickets, restaurant services, tobacco products and vegetables contributed most to annual inflation, while the ..

Statistics Estonia revised second-quarter annual GDP growth 0.2 percentage points up to 0.8%. Regular revision of last four years was also published and led to changes in real growth rates of previous years. 2012-2014 GDP growth was revised down 0...

In Tallinn, affordability rose by 8.3 points in the second quarter this year compared with the same period in 2015, due to a rapid rise in net wages and modest apartment price growth. In Riga, the HAI increased by 19 points, mainly due to a 6.9% ..

• Q-o-q swda growth revised up to 0.6% in Q2 • Y-o-y nsa growth at 2.1% in Q2 • Swedbank GDP forecast revised down to 2.1% for 2016 The GDP grew 0.6% in the second quarter compared to the first quarter, which is faster than indicated by the flas..

• Wage growth remained rapid in the second quarter at around 8%, over the year. • We expect average gross wage to rise by around 5% in 2017. In the 2nd quarter of 2016, the average monthly gross wage was 1,163 euros in Estonia, up by 7.6% over..

• Gross wage growth decelerated to 3.3% in Q2 2016 • Wage growth has become more volatile • Wage growth forecast at about 5-6% this year Average gross wage growth continued slowing down in the second quarter of 2016, partly owing to a much slowe..

In the second quarter of this year annual nominal growth of gross wages accelerated to 8.1%, while real net wages increased by 7.7%. Wage growth was driven by continued rise in the demand for qualified labour force and shrinking supply of such empl..

Some industries are winning, some are losingExport performance – a mixed pictureSustaining competitiveness is becoming challenging Some industries are winning, some are losing

The number of inactive decreased by 19,000 people, over the year, in the second quarter of this year. In addition to tight labour market, inactivity declined due to state reforms – an increase in the retirement age and the rearrangement of the soci..

Unemployment dropped to 8.0% in the second quarter this year – 1.4 pp lower than a year ago despite record high activity rate. Annual employment growth was at 2.3% and employment rate reached new record. The number of labour force increased by 0.8%..

According to the flash estimate of Statistics Estonia, GDP growth in Estonia decelerated to 0.6% in the second quarter of 2016 (in the first quarter, Estonian economy grew by 1.7%). Deceleration of the growth rate was expected. First quarter eco..

Compared to June, consumer prices shrunk by 0.3%, but were up 0.1% annually. This ended a six month long annual deflation spell in consumer prices. On monthly basis, among the key drivers were the Value Added Tax raise for housing services that pus..

The Latvian economy accelerated slightly in the second quarter this year, after a temporary soft patch. According to the flash estimate, GDP grew by 0.4% quarterly (swda). Growth remained at quite modest 2.1% (nsa) on an annual comparison. Growth..

According to the flash estimate, annual GDP growth slowed down to 1.8% in the second quarter of this year and was below our expectations. Previous quarter growth was revised up from 2.3% to 2.4%. Quarterly growth decelerated from 0.9% in the first ..

In June consumer prices increased by 0.1% compared with May and were 0.7% higher than a year ago. Average annual inflation was at 0.1% and was positive for the first time since 2014. In a month prices of goods decreased by 0.2%, while prices ..

The surge in supply has almost halted price growthConstruction sector investments lowReal estate prices relative to income stay below 12-year average Price – it is all about demand and supply In the first quarter of 2016, price growth of apartmen..

• Cheaper energy and food behind the decline in prices • Price growth is expected to be flat in 2016 In June 2016, consumer prices decreased by 0.4%, year on year, in Estonia. Goods were 0.6% and services 0.1% cheaper compared to one year ag..

With 52% of UK voting to leave over 48% wishing to stay in, history is being made as we speak, and the United Kingdom will be the first country to leave the EU since its formation. As we expected, the Brexit decision brought about the drop in ..

Lithuania is still a low- to medium – value-added economyHigher spending on R&D is no guarantee for successLow FDI, universities, and education are the most to blame Not a high-tech country… Despite some positive recent examples, the country s..

• In Tallinn, affordability rose by 10.1 points in the first quarter this year compared with the same period in 2015 due to an 8.5% rise in net wages and almost stable apartment prices. • In Riga, the HAI increased by 15.1 points, due to a 4.6% dro..

Statistics Estonia did not revise the GDP growth of 1Q2016 with its second estimate: it remained 1.7% yoy and flat qoq (swda) in real terms. Despite the fall in prices, GDP growth reached to 3% in nominal terms (2.5% in 2015). Despite the accelerat..

• Estonia’s workforce is shrinking and ageing rapidly • Employment’s contribution to growth largely exhausted • Shrinking and ageing population will pressure the labour market and public finance Estonia’s workforce is shrinking and ageing ..

• Setback in investments – probably temporary • Getting closer to bottlenecks in the labour market… but not there yet • Households are doing better, but are we on the right track for it to last long enough? Setback in investments – probably ..

The Latvian economy continues to grow, although slower+0.1% QoQ swda, 2.1% YoY nsa in 1Q 20163% growth forecast for 2016, but it can be a bit slowerIn line with our expectations revised GDP data were a bit better than shown by the flash estimate. N..

Gross wage growth decelerated to 5.3% in 1Q 2016Wage growth forecast at about 6% this yearConsumption remain rather cautiousAs expected, gross wage growth decelerated in the beginning of 2016, partly owing to a much slower increase in minimum wage ..

• Wage growth accelerated further in the first quarter. • A surge in purchasing power supports consumption but hurts enterprises’ profitability. In the 1st quarter of 2016, the average monthly gross wage was 1,091 euros in Estonia, up by 8.1%..

In the first quarter of this year annual nominal growth of gross wages accelerated to 6.9%, while real net wages increased by 6.3%. Wage growth was driven by continued rise in the demand for qualified labour force and shrinking supply of such emplo..

No minimum threshold for voter participation Brexit supporters more determined to vote Volatile financial markets likely this summer – Bremain would only give temporary relief “I think a lot of people might think: ‘Well, in the end, it’s the rat..

The unemployment rate up to 10.3% in 1Q 2016 (10.2% a year ago)Employment up by 0.6% annuallyThe unemployment rate to decline to 9.2% this year on averageWith slower economic growth in Latvia a heatup of the labour market is delayed as well. Latvia..

Finland’s GDP growth is expected to recover in 2016-2017. Worsening situation on the labour market increases burden on public finances and reduces potential output growth. Government’s austerity programme restrains economic growth in the short term..

• In Q1 2016, employment increased due to a higher number of part-time workers. • Unemployment rate was slightly smaller than one year ago. • We still expect unemployment rate to grow and employment to decline a bit in 2016. First quarter’s ..

Unemployment dropped to 8.3% in the first quarter this year –1.7 pp lower than a year ago despite record high activity rate. Annual employment growth accelerated to 2.5% and employment rate reached all time high. The number of labour force increase..

Population of Lithuania is ageing rapidly Challenges to public finance and economy, but also new business opportunitiesHigher employment rates and immigration would yield positive results, but innovation is crucial Population of Lithuania is agein..

According to the flash estimate of Statistics Estonia, GDP growth in Estonia accelerated to 1.7% yoy in 1Q 2016, while compared to the previous quarter (seasonally and working day adjusted) remained flat. On the supply side, continued robust growth..

In April consumer prices increased by 0.4%, mostly owing to seasonal increase in the prices of clothing and footwear (by 6.2%) and more expensive fuel (3.2%). Prices were still by 0.8% lower than a year ago, and currently it seems that the deflat..

In April consumer prices increased by 0.5% compared with March and were 1% higher than a year ago. Average annual deflation declined to 0.1%.

We expect the UK to stay in the EU; possibility of Brexit at 40% Financial market stress, impediments to trade, and political instability in case of Brexit… … imply risen monetary policy uncertainty and slower growth in the Baltics and the euro ..

Despite the gradual drop since 2014, investments’ share in Estonian GDP still the largest in euro areaMore investments needed in manufacturing sectorWood sector makes the largest positive contribution to manufacturing sector investment growth. In..

Technically, the Latvian economy is now in recession…... but it feels only in few industriesWe still forecast 3% growth for 2016 overallAccording to the flash estimate the Latvian economy decreased by 0.1% in quarterly terms (swda) in the first qua..

According to the flash estimate, annual GDP growth increased to 2.2% in the first quarter of this year, in line with our expectations. Previous quarter growth was revised up from 1.9% to 2%. Growth was mainly driven by household consumption as ..

• BoJ’s monetary policy stance unchanged for now • Further easing is expected this summer • BoJ will be forced to do more to avoid the deflation trap BoJ surprised the markets again Despite lowering its inflation and GDP forecasts again t..

Swedish service sector particularly vulnerable to a Brexit Loss of main ally would marginalize Swedish influence in the EU Weaker SEK and temporary stress in financial markets

Consumer prices in March were by 0.7% higher compared with February and by 0.6% lower than a year ago. In a month prices increased mostly due to a seasonal increase in the prices of clothing (by 9.8%) and footwear (by 10.5%), and due to more expe..

• In 2015, economic growth amounted to 1.1% in Estonia as the volumes of stocks and exports decreased. • We expect GDP growth to accelerate to 2.3% in 2016 on the back of higher exports and investments. In 2015, economic growth reached 1.1% in ..

In February consumer prices were 0.3% lower compared with January and 0.9% higher than a year ago. Average annual deflation declined to 0.5%. In a month prices decreased mostly due to seasonal sales of cloths and footwear. Annual deflation was ..

In Tallinn, affordability rose by 4.2 points in the fourth quarter last year compared with the same period in 2014, mainly due to a 6.6 % rise in net wages, which continued to surpass the apartment price growth. In Riga, the HAI increased by 4.7 ..

Average monthly gross wage increased by 6.0%, net wage in real terms by 8.0% in 2015 We expect average gross wage and real net wage to grow by around 5% in 2016 Average monthly gross wage amounted to 1,065 euros in 2015, +6.0% compared with 201..

Last year, GDP growth was mostly driven by very strong domestic demand. Rapid real wage bill growth and better expectations fuelled household consumption, while high capacity utilisation, sagging competitiveness, and abundant financial resources fo..

GDP annual growth slowed to 2.7% in 4Q 2015, making 2.7% for 2015 overall GDP down by 0.3% on a quarterly basis (seasonally adjusted) Growth to accelerate this year Economic growth slowed slightly in the last quarter of 2015. Namely, GDP grew..

Gross wage growth accelerated slightly to 7.4% in 4Q 2015 (from 7.3% in 3Q) Average gross wage up by 6.8%, real net wage grew by 7.4% in 2015 Wage growth to remain strong this and next year Gross average wage growth in the last quarter of 2015 a..

The unemployment rate down to 9.8% in 4Q 2015, compared to 10.2% a year ago Employment up by 1.3% last year, partly supported by an increase in the number of economically active individuals The unemployment rate expected to continue to gradually ..

• Employment and unemployment both increased in Q4 of 2015. • In 2016, we expect unemployment rate to grow and employment to decline a bit. Unemployment rate increased a bit to 6.4% in the last quarter of 2015 (6.2% in 2015 as a whole). The numbe..

According to the flash estimate of Statistics Estonia, GDP grew by 0.7% yoy in Estonia in 4Q 2015. The growth rate met our expectations. Compared to the previous quarter, GDP grew by 1.2% (seasonally and working day adjusted). In 2015, GDP grew by ..

Poland’s economy proved to be resilient to negative external shocks last year. Strong domestic demand, an expansionary fiscal policy, and stronger growth in export markets should further fuel GDP growth. However, the newly elected right-wing gov..

GDP annual growth slowed to 3% in 4Q 2015, making 2.8% for 2015 overall0% quarterly growth seasonally adjusted3.3% growth forecast for 2016GDP flash estimate published by the Central Statistical Bureau of Latvia showed that annual economic growth s..

According to the flash estimate, annual GDP growth accelerated to 2.0% in the fourth quarter of last year, in line with our expectations. Previous quarter growth remained unchanged at 1.7%. Growth was mainly driven by household consumption as re..

Goods’ prices down by 0.7%, prices of services up by 2.6% on average in 2015 Annual inflation supported by more expensive electricity while limited by cheaper oil Inflation expected to accelerate this year, but will remain moderate Consumer prices..

In December consumer prices were 0.3% lower compared with November and 0.1% lower than a year ago. Average annual deflation was at 0.9% in 2015. In December, compared with a month ago, prices decreased mainly due to 0.8% cheaper food and non-a..

• Cheaper energy behind the decline in prices • Inflation expected at around 1% in 2016 Consumer prices decreased by 0.5% in Estonia in 2015. Consumer prices declined due to lower energy prices. Motor fuels were 14%, heat energy 4%, and electrici..

Recovery of Finland’s economic growth in 2016-2017 will be sluggish and will be supported primarily by improving investments and exports. However, a decreasing labour force, weak investments, and falling profitability are reducing Finland’s potenti..

In Tallinn, affordability rose by 4.9 points in the third quarter of this year compared with the same period in 2014, mainly due to a 7.9% rise in net wages, which was higher than apartment price growth for the first time since 2012. In Riga, th..

According to the second estimate by the Statistics Estonia, the GDP growth in Estonia decelerated to 0.7% yoy in 3Q2015, while compared to the previous quarter the GDP decreased by 0.4% (seasonally and working-day adjusted). Primarily construction,..

Goods’ prices down by 0.8%, prices of services up by moderate 2.2% Prices stable in monthly terms The average inflation is expected to accelerate to 1.5% in 2016 and to 2.3% in 2017 Consumer prices in November were stable both compared to prev..

Cooperate more to grow more Income inequality and poverty: is a higher minimum wage the best answer? Taxes in the Baltics: which way forward? Cooperate more to grow more Russia is in the midst of a recession, while the rest of the Baltic Sea r..

GDP annual growth accelerated to 3.3% in 3Q 2015 (flash estimate showed 2.5%)Investments and household consumption soaredThe growth might be slightly above 2.4% forecast in November The Central Statistical Bureau of Latvia (CSBL) revised substantia..

Average gross wage grew by 7.3% in 3Q 2015 (up from 6.4% in 2Q) Average real net wage was up by 8.3% in 3Q 2015 Wage growth to remain strong this and next two years According to the data by Central Statistical Bureau (CSB), gross average wage gr..

• Wage growth picked up as labour market tightened further in the third quarter • Remarkable surge in employees’ purchasing power supports consumption According to Statistics Estonia, average wage amounted to 1,045 euros, up by 6.9% annually. As ..

The ECB signalled for more modifications of the QE programmeBaltic central banks’ purchases skewed to supranationalsImpact on real economies to remain rather limited in the Baltics

In the third quarter of this year annual nominal growth of gross wages accelerated to 5.5%. Meanwhile, real net wages increased by 6.2% as prices decreased this year. Wage growth was driven by continued rise in demand for the qualified labour force..

Finding suitable labour is increasingly difficult for Estonian employers, therefore, wage pressures persist even when enterprises sales and profits have decreased. Labour shortage was perceived as the biggest business constraint among the 18% of se..

Even though employment growth stalled, as expected, unemployment dropped to 8.3% in the third quarter this year – 1.1 percentage point (pp) lower than a in the second quarter and 0.8 pp lower than a year ago. Youth unemployment declined to 15.3% (1..

GDP growth slowed more than expected, from 1.9% in the second quarter to 0.5% in the third quarter, year on year. Quarter-on-quarter change in GDP volumes was negative: -0.5%. During the first 9 months of the year, GDP in Estonia grew by 1.3%. Ec..

To meet its growing spending needs, the government will aim to collect more tax revenues as a percent of GDP Extensive research suggests that a good tax system should strive to be neutral, progressive, and growth-friendly A proposal for Latvia: r..

GDP annual growth slowed down slightly, to 2.5% in 3Q 2015 Growth was likely broad based It seems that the growth in 2015 will be slightly faster than 2.1% forecasted in August In line with our expectations, the economic growth in the third quar..

According to the flash estimate, annual GDP growth accelerated to 1.8% in the third quarter of this year, in line with our expectations. Quarterly seasonally adjusted GDP growth increased to 0.5%. Value added growth in construction, manufacturi..