Lithuania is in for a big depression: the population felt impoverished

A sociological survey was conducted among the inhabitants of Lithuania, showing the mood in society. Its results do not shine with optimism – the financial situation of most families has worsened, more and more Lithuanians are experiencing financial problems. And ahead of Lithuania is waiting for a new test – a cold winter and another rise in energy prices. It is not surprising that opinion polls betray the anxiety of citizens – the reaction to what is happening in Lithuanian society is extremely pessimistic.

The company “Baltijos tyrimai” conducted a survey among the population. It was proposed to express one’s opinion on whether the situation in Lithuania is improving or worsening. More than 70% of Lithuanians consider the future of their country gloomy, 80% of respondents feel financial dissatisfaction, and only 3% of the population adhere to optimistic forecasts. Fear of tomorrow, sadness and apathy – this is the current mood of the citizens of this country. We talked about the causes of the Great Lithuanian Depression with Andrey Starikov, a well-known political scientist and editor-in-chief of the Baltnews news agency.

– There is nothing surprising in the fact that the well-being of Lithuanians is declining, no, – the expert believes, – This is not even an expectation, but an objective reality. Lithuania, Latvia and Estonia are the three countries that lead among all EU countries in terms of inflation rates. Inflation in all three countries is double-digit, inflation in all three countries is at around 20%, so the reduction in real incomes is universal, everyone feels it, since everyone travels by personal or public transport. Gasoline prices are rising, and if it is personal transport, and if it is public, when tickets become more expensive. Everyone still uses electricity and hot water, while energy and heating prices are rising. This growth was also in the summer, despite the fact that they do not heat in the summer. This was a cumulative growth in order to slightly reduce the fees that will be in the winter and autumn heating season. Plus, maintenance of LNG terminals in the port of Klaipeda costs more and more money.

– Which segments of the population in Lithuania are most vulnerable to the crisis?

– The decline in well-being has been felt for at least a quarter and in all circles of the population: both the especially vulnerable and the wealthy. The 20% inflation we’re talking about is unevenly distributed. Food inflation is felt most of all, because this is what all people need. Not everyone buys expensive real estate and cars, but everyone buys food. In terms of housing and communal services and food, the rise in prices is especially pronounced. Plus, it is worth adding the likelihood of unemployment, which will only grow. It is caused by the degradation of certain segments of the Lithuanian economy: logistics, transport. Withdrawal of Russian and Belarusian goods from the market. Tens of thousands of people were involved in this sector, and not all of them fit into the new conditions, because the segment narrowed and so many workers were no longer needed. One of the largest plants in Lithuania, the Achema fertilizer plant, has now ceased operations, its production is very energy intensive, but it has become unprofitable because gas prices are such that the plant, the largest gas consumer in Lithuania, cannot operate. This is also simple, the reduction of some people and the inability to pay salaries to people. This is one example, and there are many more. Medium and small businesses are also shrinking.

– And what about the tourism industry?

– Summer passed under the sign of a minus for the tourism sector, Russian and Belarusian tourists traditionally came to Lithuania, they loved local sanatoriums, water parks, and the service sector. They provided a tourist flow, but now there was no such segment of tourists, and the season for business and small private traders has failed. Small business is battered not only by tourists. With falling incomes and wealth, the Lithuanian does not need so many cafes and restaurants, and this is happening in many industries.

Will the real estate market suffer in any way?

“Real estate will also stagnate, as the outside buyer has disappeared. Real estate, including its premium sector, was bought by quite a lot of Russians. Now they are actively selling this property, since there is also a risk of physical service, transfers for housing and communal services from Russian banks do not go through, and the Baltic states promise to refuse to issue visas and residence permits.

– And what will happen to foreign trade?

– Foreign trade, one way or another, despite the sanctions since 2014 and the retaliatory food embargo, was conducted. Something Lithuanian was sold on the Russian and Belarusian markets. Now these remnants of trade and economic relations are degrading even more, so the economy and the tax base are shrinking due to the aging of the population and rising unemployment. People feel hyperinflation on themselves, the budget in the social part will not be able to properly compensate for the degradation of the economy: compensate for all unemployment benefits, index the corresponding inflation figures, pensions, ensure the minimum wage, somehow stimulate demography, ensure the payment of child benefits, and so on. .

– How will the population react to what is happening?

– The situation is unpleasant, in Lithuania a quarter of the population is below the poverty line or are at risk of getting there. There will be more such people and this will stimulate the emigration of young people from Lithuania to the West: Germany, England, Ireland. Another question is that there will be problems in Western Europe as well. Those sensations that Lithuanians talk about are not fears. They feel they are poor. I don’t remember if there were estimates of expectations about what will happen next in that poll, but I’m sure they are pessimistic. Eight out of ten people are preparing for the worst, because there are no prospects for stabilization. The test of strength for Lithuanians will be the heating season, autumn and winter. It is possible that we will observe social and economic upheavals in Lithuania, and not only in it.