Analytics, Baltic, Financial Services, Pensioners, Wages

In 2013 gross average monthly wage increased by 7.6% in Estonia, 4.7% in Lithuania, and 4.6% in Latvia. According to the experts of SEB bank, due to increasing minimum wage and shrinking inflation, the purchasing power of residents in all the three Baltic countries has increased as well.

In the fourth quarter of 2013, the real wage (taking into account inflation) most rapidly grew in Latvia (6.2%), while in Estonia it increased by 6% and in Lithuania it rose by 4.2%.

Based on the data of SEB Baltic Household Outlook, though in all the Baltic countries net average wage has exceeded the pre-crisis level, in Estonia it grew faster than in Latvia and Lithuania. In the fourth quarter of 2013, net average wage in Estonia rose by 14%, while in Latvia and Lithuania it grew only by 2% both.

In the last quarter of 2013, net average wage amounted to EUR 785 in Estonia, EUR 530 in Latvia, and EUR 524 in Lithuania.

According to SEB experts, the gap between the Baltic countries should be reduced in the future. In 2014 a faster salary growth is expected in Lithuania and Latvia compared to Estonia.

It is forecasted that gross average wage should increase by 5.5% in Lithuania and by 5-5.5% in Latvia. A 5% increase in gross average wage is forecasted for Estonia.