Economist: Consumption will pick up in second half of 2023
Consumption will pick up in the second half of the year, a Swedbank economist said. On Friday, Statistics Estonia reported retail sales fell by 8 percent year-on-year in June.
Grocery stores' turnover fell by 4 percent and gasoline sales by 2 percent.
Stores selling computers and their accessories, books, sports equipment, games, and toys saw the biggest drop, 21 percent.
"It is only natural that, when real incomes have fallen, people tend to buy the goods and services they need to survive," said Liis Elmik, Swedbank's senior economist.
"Our forecast is that consumption will pick up in the second half of the year. We are already seeing prices slowing down and both wages and pensions growing faster than prices. This should support consumption. And the expected tax increases will probably also shift some of next year's consumption into this year," she told Friday's "Aktuaalne kaamera".
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Editor: Merili Nael, Helen Wright
Source: Aktuaalne kaamera
