According to a study commissioned by Citadele Bank, Estonians are much more pessimistic about their future financial situation compared to Latvians and Lithuanians. /nginx/o/2024/03/04/15927245t1h7280.jpg)
Wallet. Photo: IMAGO
According to a study commissioned by Citadele Bank, Estonians are much more pessimistic about their future financial situation compared to Latvians and Lithuanians.
41% of Estonians believe that their financial situation will worsen in the next 12 months, and only 14% think that it can improve.
While 41% of Estonian residents believed that their financial situation would worsen next year, 27% of respondents in Latvia thought the same, and 16% in Lithuania. Among Latvians and Lithuanians there are many more who believe that their financial situation will not change at all. This was the answer given by 22% of respondents in Estonia, 33% in Latvia and 39% in Lithuania.
14% of respondents in Estonia, 18% in Latvia and 19% in Lithuania believe that their financial situation will improve.
“The reason for the pessimism of Estonians probably lies in the long-term economic downturn, sharply rising inflation and relatively high interest rates,” said Marina Hakiainen, head of retail banking at Citadele Estonia. “Wages have risen, but not at the same rate as prices, which also makes people cautious about the future.”
The survey also asked whether people thought their salaries could increase next year. Although 14% of Estonian residents believe in an improvement in their financial situation, more people believe in salary growth – 23% of respondents. 8% believe that their salary is likely to decrease, and 34% believe that there will be no change in salary.
“Obviously, this is due to the noticeable increase in the cost of living in Estonia – people believe in rising wages, but at the same time do not believe that this will significantly improve their financial situation,” Hakiainen noted. She added that people could be given hope by the fact that Estonia's economy is finally emerging from recession and can begin to catch up with Latvia and Lithuania, where the economic growth already achieved is reflected in a more positive mood among people.
“In addition, the European Central Bank recently cut interest rates for the first time. The Euribor rate will soon begin to decline, which will bring relief to many home loan holders. Anyone who wants to speed up this process should definitely think about refinancing their existing home loan in order to get more favorable conditions from the bank,” said Hakiainen.
In May of this year, at the request of the Citadele bank, the research firm Norstat conducted a pan-Baltic study. In each country, 1,000 people aged 18 to 74 were surveyed.
