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Wednesday, 29.03.2017, 12:06
Latest projection of the Bank of Lithuania: Given economic acceleration and average wage will rise more than prices21.03.2017
Having assessed the gradual pick-up in domestic economic activity and the improving situation of Lithuanian manufacturers in relevant foreign markets, the Bank of Lithuania projects that this year the economy will expand by 2.6%, while its growth rate next year will reach 2.8%. Wage growth, estimated to stand at 6.1% in 2017 and 5.7% in 2018, will outstrip the rising inflation rates. Such projections for economic and wage growth are higher than expected and announced at the end of last year.
Keyword tags: Analytics, Banks, Direct Speech, Economics, Wages
Early in the 19990s, when the Berlin Wall had come down, enthusiasm about the perspectives for the future was unbridled in the Baltic Rim countries. Old ties were strengthened, new plans made, networks created, projects initiated, and numerous organisations from governmental to local levels founded within just a few years.
The flash estimate1 put the Estonian current account at 251 million euros in deficit in January 2017. The cause of the deficit was large one-off import transactions for transport vehicles. The deficit on the goods and services account was 240 million euros. Goods exports grew by 9% and goods imports by 39%, so the deficit on the goods account widened to 342 million euros. Exports of services increased by 12% and imports by 10%, so the surplus on the services account was larger than a year previously at 102 million euros. The net outflow on the primary and secondary income accounts totalled 11 mln euros, which was 36 mln euros less than a year earlier.
The current account surplus for 2016 was the largest since independence was regained at 2.7% of GDP. Reinvested income is preferred to new money for use in investment. The net international investment position continued to improve.
The latest data of the Central Statistical Bureau (CSB) show that during the year* (in February 2017, compared to February 2016) the average level of consumer prices increased by 3.3%. Prices of goods grew by 3.4% and prices of services by 3.0%.
Inflation continued to rise in Estonia, and it was at its fastest for four years in February. Inflation is being driven by higher global prices for oil and food, and by higher excise rates. Core inflation has also risen in recent months because of service prices