in 2022 I quarter according to the data, Lithuania’s position in the Economic Misery Index has changed: the country is in fifth place on the list of countries experiencing the greatest economic misery.
“Analyzing the indicators of the Economic Misery Index: inflation, gross domestic product (GDP) growth and the unemployment rate, we notice that it was the record price growth that had the greatest impact on the economic situation,” says Kotryna Tamkutė, LLRI’s communications manager.
Price growth in 2022 I quarter In Lithuania, it reached as much as 6.2 percent. Europeans faced an average of 3.8 percent. quarterly inflation. Even as consumer prices begin to catch up with producer prices, the overall price level will remain elevated in absolute terms and will not decline, even if monthly inflation turns negative.
“Inflation reduces the real income and purchasing power of the population. However, the most painful thing is that due to extremely high price growth and great uncertainty in the future, money no longer loses its value and cannot serve as a means of saving. It is becoming more and more difficult for both residents and companies to forecast their expenses and income, to invest”, says the LLRI representative.
Countries with the least economic poverty in 2022 in the first quarter there were Ireland, Malta, Slovenia, Norway, Poland. Spain, Greece, Slovakia, and Italy suffered somewhat more than Lithuania.
The economic misery index was created in the 1970s by the American economist Arthur Okun, and later improved by the Americans Robert Barro and Steve Hanke. It allows you to look at the state of the country’s economy from the side of the country and paves the way for a discussion on how to solve the problems that plague it.