GINI Country Report: Growing Inequalities and their Impacts in the Baltic States Estonia, Latvia, Lithuania
The macroeconomic environment in the Baltic States during 1980-2012 has been especially dynamic having strong effects also on the changes in inequality. The beginning of transition was characterized by output decline deeper than in the other Central and Eastern European (CEE) countries. While later the average growth has been rather strong, also the volatility across the business cycles has been strong, as shown by the highest growth rates in European Union during 2004-2007 and the deepest GDP decline in 2009. The macroeconomic dynamics, like transition and business cycles, have had profound impact on the demographic processes: while the beginning of transition marked significant population decline due to declining birth rates, increasing mortality and emigration, the 2000-s saw some stabilization especially in Estonia, but the growing emigration since joining the European Union is an issue especially in Latvia and Lithuania.
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