Trump: I agreed to do that
The full car park does not stay for a long time. In five months, used car sales danced a tenth compared to the same time last year.
« If you needed good outfits in the past, you might now choose a simpler kit, but in a newer year, the mileage is smaller to have no problems and high costs later, » said Paul Valiukėnas, director of Longo.lt.
On average, Lithuanians can spend up to 12 thousand euros for a vehicle. Comes to buy both with personal savings and loans.
« Half in half, half buy at their own expense, which make orders from their own account, and the other half buys a hire, » said Longo.lt director.
It is no longer so scary to take a loan, and the Bank of Lithuania notices. The home loan increased by one tenth and 24 % for consumption. There are no delays to pay the loan premiums.
« It seems that hurricanes are raging around, and as in the eye, hurricanes are not touched, consumer loans are growing very strongly, and the home loan portfolio is growing solidly, » said Luminor Chief. Economist Žygimantas Mauricas.
Photo by A. Ufarto / ELTA
According to the Bank of Lithuania, lending accelerated as the purchasing power of people increased, and interest has also fallen.
« Housing loans saves up to EUR 20 million every month due to lower interest rates and up to EUR 15 million, » said Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania.
There will be more good knowledge. The head of the Bank of Lithuania states that the custody of interest does not end. Markets now expect Euribor to fall to 1.9 percent by the end of the year.
« Yes, I see space to reduce interest rates, » stressed G. Šimkus.
Population and business finances show that everything is fine, but at the same time it is difficult to say. There is a growing uncertainty, especially due to customs duties.
« We will see hard to predict both harmful to Europe and the world for four years, » said Swedbank Chief of Lithuania in Lithuania. Economist Nerijus Mačiulis.
« The financial markets share in two parts – when the short is still asleep – calm when wakes up – becomes impossible and that uncertainty exists, » explained Luminor chief. Economist.
US President Donald Trump in a trade war and attacks the European Union again. Stated that negotiations with Brussels were nowhere to be held. As a result, imports from the community from June 1 want to introduce a single 50 percent duty rate. After an interview with the President of the European Commission, he postponed his threats until July 9.
« Ursula has just called me and asked to extend the term of the first June, saying she wants to start serious negotiations. I agreed to do it, » the US president said.
If the White House introduces promised rates, the head of the Bank of Lithuania says: residents can not only delay the purchase of housing or car.
« It can really touch new cars, but it takes 3-5 years before they find themselves in the used car market, » explained Valiukėnas.
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Trade tensions can also cherish Lithuanian goods, reduce consumer purchasing power, and make it harder to pay off their debts.
« To make economic growth less than predicted – it is really so, » said the chairman of the Board of the Bank of Lithuania.
« Inflation is in a dangerous zone, even as income grows, the population can pause, » said Ž. Mauric.
How much the Lithuanian economy may lose will depend on the size of the customs duties, but no one promises the collapse of the economy.
« The impact on the gross domestic product could be about one percent of the European Union, but the sectors are most vulnerable – the entire automotive and pharmaceutical industry, » Mačiulis said.
Recently, Lithuania is getting dry out of the puddle. The economy for crises is resistant, but tax reform can also confuse the situation.
« A good tax system that ensures sufficient financing of state functions. Our state has made a lot of obligations, » said G. Šimkus.
The Seimas will still have to return to tax increases.
