- 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
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.
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Vytenis Šimkus Vytenis.firstname.lastname@example.org +370 687 17870
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