In Latvia, 27% of residents expect their financial situation to worsen over the next 12 months, representatives of Citadele Bank told LETA, citing survey data. At the same time, 18% expect their financial situation to improve, and 33% of residents expect their financial situation to improve. will remain unchanged over the next 12 months. At the same time, in Lithuania, 39% of respondents predict that the financial situation will remain unchanged over the next year, 19% expect it to improve, and 16% expect it to worsen. In Estonia, 22% predict a stable financial situation, 14% predict it will improve, and 41% predict it will worsen. Although a third of residents of the Baltic countries do not expect salary growth in the next 12 months, some respondents are positive; for example, in Latvia, 21% of respondents expect that their salary could increase by up to 10%. Residents aged 18 to 39 are more positive about salary growth. The bank also noted that although inflation has actually stopped over the past year, a quarter of Baltic residents do not feel its decline in everyday life and their purchasing power has remained unchanged, the survey shows. In Latvia, 4% of respondents said that their purchasing power has improved and they can buy more. In turn, 39% of respondents in Latvia noted that their purchasing power, on the contrary, had worsened and they could buy less, while in Estonia 53% of respondents indicated a deterioration in purchasing power. Speaking about the increase in interest rates on loans, in Latvia 53% of respondents, in Lithuania 52% of respondents and in Estonia 47% of respondents said that they do not have loans, and therefore this did not affect their budget in any way. At the same time, 16% in Latvia said that growing loan payments last year forced them to reconsider and reduce everyday expenses, while in Lithuania 19% said so, and in Estonia – 28% of respondents. Rising interest rates forced 8% of respondents in Latvia and 9% in Lithuania and Estonia not to buy real estate. At the same time, in the next 12 months, residents of the Baltic countries plan to make more significant purchases, for example, 29% of Latvian residents plan to travel, 26% will purchase what they need to repair or improve their home, 17% plan to purchase new household appliances or furniture, 12 % plan to buy a new car and 6% – new housing. When planning large purchases, 75% plan to finance them from savings, 16% will use a bank loan and 7% plan to borrow from loved ones. Citadele bank economist Martins Abolins noted that although almost 30% of Latvian residents expect that their financial situation may worsen in the coming year, after the economic shocks and high inflation experienced in recent years, this is certainly not surprising. According to the economist, it is positive that more than half of Latvian residents expect their financial situation to improve or remain unchanged, and only 6% are afraid of a possible reduction in salaries. Salaries are rising in Latvia, and the positive mood of residents is an important prerequisite for a return to economic growth. Citadele Bank, together with the research agency Norstat, conducted a survey on the financial situation and residents’ forecasts in May 2024, surveying online more than 3,000 residents of the Baltic countries aged 18 to 74 years.