Lithuania’s GDP will grow by 3% in 2026 and 2.3% in 2027, according to Swedbank’s latest macroeconomic outlook, BNS reports. In January 2026, the bank projected that GDP growth would reach 3.5% in 2026 and 2.5% in 2027. Nerijus Maciulis, Swedbank’s chief economist, said that growth would be spurred by consumption, strong exports, and record…
Estonia and Finland have postponed a decision on the construction of a third undersea electricity cable between the two countries until 2031, ERR reports. Kalle Kilk, CEO of Estonia’s state-owned transmission system operator, Elering, said that the timetable for the EstLink 3 project was pushed back at Finland’s request. Instead of the previously planned completion date of…
The Estonian parliament, the Riigikogu, has passed amendments that will make it easier to bring skilled and qualified foreign labour into the country, ERR reports. Temporary residence permits for work will be issued under more favourable conditions in sectors deemed suffering from labour shortage, and the maximum number of permits in those sectors will be…
Lithuania’s Finance Minister, Kristupas Vaitiekunas, urged the EU to pursue negotiations and prepare retaliatory measures after US President Donald Trump again threatened to raise tariffs, BNS reports. He predicted that the EU would be “in this game” through Trump’s entire term in office. “This process involving tariffs, negotiations, and pressure from both sides will be…
Latvia has over 223,000 pupils studying in schools of general education in the academic year 2025/2026, TV3 reports. However, due to the country’s demographic decline, the number of schoolchildren may drop to fewer than 200,000 by 2030. By 2040, the number may fall to a little over 120,000, which would be more than 40% fewer…
Estonia’s Minister of Finance, Jürgen Ligi, has rejected a proposal to lower the excise duty on diesel fuel temporarily, ERR reports. Ligi argued that broad-based tax cuts would have a very large and lasting negative impact on the state budget, and that targeted measures to support vulnerable households and sectors would be more sensible. In…
Estonia’s new motor vehicle tax and registration fee, which were introduced as of 1 January 2025, generated total revenue of EUR 151mn in 2025, ERR reports. Registration fee revenue totalled EUR 64.2mn in 2025, which was more than 50% less than the projected EUR 137mn. Meanwhile, revenue from the motor vehicle tax was close to…
The Free Trade Union Confederation of Latvia (LBAS) has proposed raising the country’s minimum monthly wage by at least EUR 55 to EUR 835 in 2027, LETA reports. Currently, Latvia’s minimum wage stands at EUR 780 per month, while the tax-free income threshold is EUR 550 per month. LBAS noted that under government rules, the…
Poverty in Lithuania has increased across the country, particularly in remote regions, LRT reports. Nearly 700,000 people are living below the poverty risk threshold. The average poverty level in rural areas is almost twice as high as in cities. In some municipalities, every third resident is living in poverty. Ugne Uzgale, head of strategy and…