Slowing inflation and strong wage growth in Estonia have increased people’s purchasing power, according to the Bank of Estonia, BNS reports. In June 2024, the consumer price index rose by only 2.5% on year, which was the slowest rate in three years, primarily due to falling energy prices. At the same time, most services have…
International rating agency Moody’s has reaffirmed Latvia’s credit rating at A3 with a stable outlook, LSM reported. The agency noted the stability of Latvia’s public finances and general government debt. Moody’s expects the general government deficit to be around 2.9% of GDP in 2024 and to gradually decline to 2.6% in 2025 and to 1.7%…
Estonia will issue 10-year bonds for EUR 1bn to cover the state budget deficit in 2024, ERR reports. Sven Kirsipuu, deputy secretary general of the Ministry of Finance, said that the bond issue would cover about half of the state’s borrowing needs in 2024. Preliminary indications suggested that investor interest in Estonian bonds remained strong,…
Estonia’s Prime Minister, Kaja Kallas, has submitted the draft state budget for 2024 to the parliament, the Riigikogu, for debate, ERR reports. Budget revenues will amount to EUR 16.79bn, expenses to EUR 17.67bn, and investments to EUR 0.82bn. The budget deficit is estimated at EUR 1.19bn or 2.8% of GDP, and the government therefore plans…
Estonia’s current account deficit totalled EUR 284mn in the second quarter of 2023, according to the Bank of Estonia’s flash estimate, ERR reports. The deficit amounted to EUR 13.0mn in April 2023, to EUR 180.3mn in May 2023, and to EUR 90.7mn in June 2023. The quarterly current account deficit stood at 3% of GDP,…
Estonia’s current account deficit stood at EUR 20.1mn in June 2023, compared to a deficit of EUR 92.4mn in June 2022, according to the Bank of Estonia’s flash estimate, ERR reports. Exports and imports of goods both fell by 10%, while service exports rose by 3% and imports by 2% over a year. The services…
US-based credit rating agency Fitch Ratings has reaffirmed Latvia’s sovereign credit rating at A-, which is unchanged from the previous rating in February 2023, LSM reports. At the same time, the agency revised its rating outlook from stable to positive. Fitch noted that Latvia had eliminated its dependence on Russian energy imports and reduced non-energy…
Estonia’s state budget deficit is likely to be smaller than forecast in 2023, the Ministry of Finance announced, ERR reports. In the first five months of 2023, budget revenues increased more than expected due to the rapid growth of wages and rise in prices. Tax revenue was 10% higher than a year earlier. At the…