Macro Focus - Economy Heat Index (EHI): Synchronized cooling
Synchronized cooling

  • Economies cooled at the fastest rate in a decade
  • Weaker labour markets and inflation are the primary drivers of cooling 

Unsurprisingly, temperature of the Baltic economies dropped rapidly due to the massive pandemic shock.

In all three countries, the deteriorating labour market situation and easing of core inflation were the common signals of cooling economies.

 Overall, the period since the first wave was characterized by high levels of excess private sector saving, which was particularly noticeable in Estonia and Lithuania. Excess saving was caused by inability to spend, precautionary saving and corporate liquidity hoarding.

PDF-Document Full report here

For more information please contact

Vytenis Šimkus Vytenis.simkus@swedbank.lt +370 687 17870

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