investment

For the first time since 1995, investment as a share of the economy is higher in Lithuania than in Estonia. According to Eurostat, gross fixed capital formation in Lithuania amounted to 22.1% of GDP in the first quarter of 2026, while in Estonia it fell to 21.7%. Lithuania remained ahead in the second quarter, with investment reaching 22.4% of GDP, compared with 22.1% in Estonia.

In recent years, Slovakia has been engaged in a debate about being \"stuck in the middle-income trap,\" about having \"exhausted our growth model,\" and about the need to move \"from assembly line to brain gain.\" This debate matters. The trouble is that its vocabulary tempts us into a far too mechanical view of prosperity. Let me explain what I mean.

Bulgaria has adopted the euro. After more than 28 years under a currency board arrangement, the country is entering a new stage of its development. The bank failures and hyperinflation of 1996–1997 wiped out people’s savings and pushed Bulgaria to the bottom of Europe, below 30% of the EU average in GDP per capita in purchasing power parity by the end of the 1990s.

According to the Fraser Institute’s latest Economic Freedom of the World report, Ukraine has once again found itself in the group of the least economically free countries in the world. Ukraine is currently ranked 143rd among 165 countries and territories, a slight improvement from the previous 150th place.

I recently attended a discussion on Europe’s competitiveness. There was unanimous agreement that we are lagging behind in all applied technologies—perhaps with the sole exception of the pharmaceutical industry. The reflexive response from the participants was: “We’ve created a fund for that.” Too few startups? Create a startup fund.Weak AI performance? An AI innovation fund!

Ukraine\'s economy experienced a temporary bump in August 2025, with real GDP growth accelerating to an estimated 8% year-over-year after a slight decline in July, according to the latest Monthly Economic Monitoring report from the Institute for Economic Research and Policy Consulting.

The European Union finds itself in a paradoxical situation. The population is ageing, the economy is stagnating, and at the same time, vast sums of citizens\' savings are lying idle in bank deposits. According to the European Commission, 31% of Europeans\' savings are unused in bank accounts. In contrast, Americans put their money to work much more efficiently, keeping three times less cash under the mattress.

I often hear the phrases \'real price\' or \'justified price\', for example, in the question of ambulances or hospitals. They make my economic hair stand on end. It reminds me of how deeply embedded healthcare is in the price thinking of planned economics. Before 1989 in Slovakia, the whole economy was run on the principle of price. A manager in a company calculated the price of steel, plastic, and man-hours to produce one Škoda 120 car, for example.

The wonderful thing about economics is that it recognizes truths about the world that laypeople cannot intuitively grasp, based on simple statements about human action. Consider two concepts: opportunity costs and marginal decision-making based on marginal benefits and costs. If you really understand these two concepts, then it must seem normal to you that there is such a thing as optimal environmental pollution.

Price inflation is not inevitable. One of the most common explanations for price growth is identifying it with capitalism. The argument is that inflation is unavoidable as the economy grows. It is thought that for businesses to have an incentive to invest and wages to grow, the prices of goods and services should rise in the first place.