The strong wage increase in the third quarter is good news for a working person. Increasing employment and average wages, on the other hand, are a bit mystifying against stagnant corporate income and near-zero growth in the third quarter. Upward…
Several important economic indicators were updated last week. The new GDP flash estimate for the third quarter indicates that instead of picking up speed, as was expected at the beginning of the year, economic growth is instead beginning to freeze.…
Compared to the rest of Europe, the residents of the Baltic States rarely move house. People chiefly move for family-related reasons, reveals the new Baltic Household Outlook prepared by SEB. The residents of the Nordic countries move most often. As…
Balances on loan private individuals’ loans in Estonia have begun to grow at accelerating rates. According to the Bank of Estonia, last August the balance on private individuals’ loans stood at 7.23 billion euros, up 3.5% year on year. Growth…
Due to a reduction in labour taxes, average net (after tax) wages in the first half of 2015 in Estonia and Latvia rose at a quicker pace than gross wages. In Lithuania the average net wages rose a little bit…
The dual-track economic picture in Eastern (including Central) Europe will persist over the next two years. Conflict-plagued Russia and Ukraine will show continued weakness. In Russia, recession will linger during 2016 too, as plunging oil prices rebound only weakly and…
A survey by SEB shows that in terms of current income levels and property prices, residents in the Baltic capitals can now become owners of bigger flats than a year ago. The SEB home purchasing power index* has improved thanks…
Growth of house prices one of the fastest in Europe House prices have grown faster than households’ incomes Surge in supply should slow future price growth Growth of house prices one of the fastest in Europe Of the 27 countries…
Economic statistics for the past week revealed that the Estonian economy grew a lot more last year than was previously thought. The growth of GDP in the second quarter can also be regarded as being good. At the same time,…
Last week several updates on some important economic indicators were published. Unfortunately the news were mainly negative – industrial production is falling, orders are decreasing and employee’s pay is not growing from the company’s increasing income but from investments. Industry…
Cheaper energy behind deflation • Consumer prices dropped further in August • Cheaper energy behind the decline in prices • Inflation expected at -0.2% in 2015 and +1.9% in 2016 August deflation numbers were in line with our expectations. In…
Why worry about wage growth? Wage growth accelerated again Not sustainable in the longer term Exports have to recover Wage growth accelerated again Gross wage growth has been around or above 5% since 2011. In the first half of 2015,…
The housing affordability index (HAI) increased to 133.2 in Vilnius, 151.8 in Riga, and 150.6 in Tallinn In Tallinn, affordability rose marginally by 1.4 points in the second quarter this year compared with the same period in 2014, due to…
The ending week will be remembered by many for the nervous decline of the stock markets. Despite these uncertain times, the global economy is on track for growth. In Estonia, initial data published for the economic performance of businesses in…
Data from Statistics Estonia show that the growth in average gross wages accelerated to 5.8% in the second quarter of 2015, from 4.5% in the first quarter. Tax changes that took effect this year supported the 7.3% rise in the…