“Now there will be hunger games”: the economist estimated what we will see in the market this year | Business

Estonians feel the inflation the most

The results of the survey show that a large part (41%) of Lithuanians, despite the high prices, do not feel a change in their purchasing power, although 31% respondents, however, they reduced their financial opportunities. However, the situation seems more complicated to the neighbors – 39 percent felt the change. Latvians and 53 percent Estonian

“Lithuania ranks last among the Baltic countries in terms of population, whose purchasing power has deteriorated due to high prices. There are 31 percent of them,” said Citadele bank economist Aleksandars Izgorodin.

According to the economist, even in June of this year, the opinion of Lithuanian residents regarding their finances was the best since 2007. March. At that time, Estonia stands out in a very negative way.

“This is primarily determined by the economic cycle, Estonia is currently still in recession. We see that Lithuania’s economy will grow by 2 percent this year, while Estonia’s GDP will shrink by 0.3 percent.

Another problem is the high level of indebtedness of the Estonian population compared to other Baltic countries. Loan obligations of Estonian residents make up 35 percent. from GDP and this is the highest indicator in the Baltic region. That highest debt puts the greatest pressure on the purchasing power of Estonians, because the higher the debt, the more money people have to spend on servicing the loans.

Estonia is also highly dependent on trade with Scandinavian markets. Since Scandinavia is also now suffering from high interest rates, Estonia’s foreign trade has suffered as a result, and this is another reason why Estonia lags behind the other Baltic countries in terms of the economic cycle,” explained A. Izgorodins.

The interest did not frighten, the plans include housing and travel