Latvia’s National Alliance has proposed merging three ministries into a new Ministry of National Economy, LETA reports. Under the proposal, the new ministry would take over the functions of the current Ministry of Economics, Ministry of Climate and Energy, and Ministry of Smart Administration and Regional Development. Energy Minister Janis Vitenbergs of the National Alliance…
Lithuania’s budget deficit was the smallest in the Baltic States in the first quarter of 2026, according to Eurostat data, BNS reported. Lithuania’s budget deficit stood at 0.9% of GDP, which was down from 1.7% in the fourth quarter of 2025. Estonia’s budget deficit amounted 1.2% (1.3%) and Latvia’s to 1.9% (2.4%) of GDP. Meanwhile,…
Latvia’s central bank and the country’s Finance Ministry have both lowered their GDP growth forecasts and raised their inflation forecasts. Latvia’s GDP growth will drop to 2.0% in 2026, before rising to 2.4% in 2027 and 3.0% in 2028, according to the Bank of Latvia’s latest macroeconomic projection. In December 2025, the central bank had…
The Lithuanian parliament, the Seimas, has approved the programme of incoming Prime Minister Mindaugas Sinkevicius’s coalition government, BNS reported. Altogether 72 MPs voted for, 29 against, and 4 abstained. After the vote, the government’s ministers were officially sworn in to their posts. The new coalition includes Sinkevicius’s Social Democratic Party of Lithuania, the Union of…
China appears open to talks on normalising diplomatic relations with Lithuania, the chairman of the foreign affairs committee of the Lithuanian parliament, Remigijus Motuzas of the ruling Lithuanian Social Democratic Party (LSDP), stated, BNS reports. Speaking after a briefing by Foreign Minister Kestutis Budrys, Motuzas said that China was “inclined to meet, communicate, and negotiate”…
Lithuanian President Gitanas Nauseda has officially nominated Mindaugas Sinkevicius, chairman of the Social Democratic Party of Lithuania (LSDP), for prime minister, BNS reports. The parliament, the Seimas, will vote on the nomination on 30 June 2026, after which Sinkevicius will have 15 days to present his new cabinet and government programme for parliamentary approval. Sinkevicius…
Every major party in Estonia has added to the state’s debt burden, according to Kaspar Oja, senior economist at the Bank of Estonia, ERR reported. While the biggest budget deficits emerged during the coronavirus pandemic, Estonia has had structural deficits every year since 2017, Oja noted. His analysis found that when in government, the Conservative…
Lithuania’s incoming new coalition government may try to resume official dialogue with neighbouring Belarus on reopening transport links and trade, The Baltic Sentinel reports. Political analyst Vytautas Bruveris noted that many rural voters of the Lithuanian Social Democratic Party (LSDP) and the Lithuanian Union of Farmers and Greens (LVZS), especially in eastern Lithuania, were tired…
Hourly labour costs in the Baltic States rose the fastest in Lithuania in the first quarter of 2026, according to Eurostat data, ELTA reported. Nominal hourly labour costs in the whole economy rose by 8.6% in Lithuania, 6.2% in Estonia, and 2.3% in Latvia from the first quarter of 2025. Hourly wage costs alone went…
