Housing Price Credit and Output Cycles How Domestic and External Shocks Impact Lithuania s Credit

Housing Price  Credit  and Output Cycles  How Domestic and External Shocks Impact Lithuania s Credit
Author: Iacovos Ioannou
Publsiher: International Monetary Fund
Total Pages: 54
Release: 2018-07-12
Genre: Business & Economics
ISBN: 9781484368381

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Lithuania’s current credit cycle highlights the strong link between housing prices and credit. We explore this relationship in more detail by analyzing the main features of credit, housing price, and output cycles in Baltic and Nordic countries during1995-2017. We find a high degree of synchronization between Lithuania’s credit and housing price cycles. Panel regressions show a strong correlation between a credit upturn and housing price upturn. Moreover, panel VAR suggests that shocks in housing prices, credit, and output within and outside Lithuania strongly impact Lithuania’s credit.

Housing Price Credit and Output Cycles How Domestic and External Shocks Impact Lithuania s Credit

Housing Price  Credit  and Output Cycles  How Domestic and External Shocks Impact Lithuania s Credit
Author: Iacovos Ioannou
Publsiher: International Monetary Fund
Total Pages: 54
Release: 2018-07-12
Genre: Business & Economics
ISBN: 9781484367513

Download Housing Price Credit and Output Cycles How Domestic and External Shocks Impact Lithuania s Credit Book in PDF, Epub and Kindle

Lithuania’s current credit cycle highlights the strong link between housing prices and credit. We explore this relationship in more detail by analyzing the main features of credit, housing price, and output cycles in Baltic and Nordic countries during1995-2017. We find a high degree of synchronization between Lithuania’s credit and housing price cycles. Panel regressions show a strong correlation between a credit upturn and housing price upturn. Moreover, panel VAR suggests that shocks in housing prices, credit, and output within and outside Lithuania strongly impact Lithuania’s credit.

Republic of Lithuania

Republic of Lithuania
Author: International Monetary Fund. European Dept.
Publsiher: International Monetary Fund
Total Pages: 60
Release: 2018-06-25
Genre: Business & Economics
ISBN: 9781484363157

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This 2018 Article IV Consultation highlights that the economy of Lithuania picked up steam in 2017, following two years of sluggish growth. Real GDP expanded by 3.9 percent largely because of the acceleration of investment, which benefited from credit growth and high capacity utilization. Private consumption remained the main engine of growth, though it was held back by decelerating real wages. The external current account swung to a modest surplus with exports benefiting from past investments in export capacity and improved external demand. Growth in 2018 is projected at 3.2 percent, mainly because of weaker exports after a very strong performance in 2017 and a slowdown of consumption driven by negative employment growth.

OECD Economic Surveys Lithuania 2020

OECD Economic Surveys  Lithuania 2020
Author: OECD
Publsiher: OECD Publishing
Total Pages: 116
Release: 2020-11-23
Genre: Electronic Book
ISBN: 9789264924352

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Lithuania’s economy is performing strongly and converging fast towards the most-developed OECD countries, driven by growing exports and investments and supported by a sound macroeconomic framework as well as a friendly business climate. For the first time since renewed independence, more people are settling in the country than leaving it. The peak of the COVID-19 crisis was one of the mildest in Europe, thanks to a well-functioning health system, effective containment measures and a relatively short lockdown. Yet prosperity is unevenly distributed across people and places. Further reform could help sustain achievements to date. Providing adequate income support for the needy, especially the elderly, and high quality social services, while improving integration into the labour market, could help reduce poverty. Stronger local and regional institutions, better education and skills particularly in rural areas and a more flexible housing market could make regional development more balanced. Finally, strengthening the regulatory framework, reducing the scope of state-owned enterprises and moving towards a low-carbon economy will help raise productivity while ensuring resilient and sustainable growth. SPECIAL FEATURES: REDUCING POVERTY; FOSTERING REGIONAL DEVELOPMENT

Financial Cycles

Financial Cycles
Author: Mr.Marco Terrones,Mr.Ayhan Kose,Mr.Stijn Claessens
Publsiher: International Monetary Fund
Total Pages: 42
Release: 2011-04-01
Genre: Business & Economics
ISBN: 9781455227037

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This paper provides a comprehensive analysis of financial cycles using a large database covering 21 advanced countries over the period 1960:1-2007:4. Specifically, we analyze cycles in credit, house prices, and equity prices. We report three main results. First, financial cycles tend to be long and severe, especially those in housing and equity markets. Second, they are highly synchronized within countries, particularly credit and house price cycles. The extent of synchronization of financial cycles across countries is high as well, mainly for credit and equity cycles, and has been increasing over time. Third financial cycles accentuate each other and become magnified, especially during coincident downturns in credit and housing markets. Moreover, globally synchronized downturns tend to be associated with more prolonged and costly episodes, especially for credit and equity cycles. We discuss how these findings can guide future research on various aspects of financial market developments.

World Economic Outlook April 2008

World Economic Outlook  April 2008
Author: International Monetary Fund. Research Dept.
Publsiher: International Monetary Fund
Total Pages: 302
Release: 2008-04-09
Genre: Business & Economics
ISBN: 9781589067196

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The global expansion is losing speed in the face of a major financial crisis. The slowdown has been greatest in the advanced economies, particularly in the United States, where the housing market correction continues to exacerbate financial stress. The emerging and developing economies have so far been less affected by fi nancial market developments and have continued to grow at a rapid pace, led by China and India, although activity is beginning to slow in some countries. At the same time, headline infl ation has increased around the world, boosted by the continuing buoyancy of food and energy prices. Policymakers around the world are facing a diverse and fast-moving set of challenges, and although each country's circumstances differ, in an increasingly multipolar world it will be essential to meet these challenges broadly, taking full account of cross-border interactions. The World Economic Outlook (WEO) presents the IMF staff's analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries. It focuses on major economic policy issues as well as on the analysis of economic developments and prospects. It is usually prepared twice a year, as documentation for meetings of the International Monetary and Financial Committee, and forms the main instrument of the IMF's global surveillance activities.

World Economic Outlook April 2009

World Economic Outlook  April 2009
Author: International Monetary Fund. Research Dept.
Publsiher: International Monetary Fund
Total Pages: 252
Release: 2009-04-22
Genre: Business & Economics
ISBN: 9781589068063

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This edition of the World Economic Outlook explores how a dramatic escalation of the financial crisis in September 2008 provoked an unprecedented contraction of activity and trade, despite active policy responses. It presents economic projections for 2009 and 2010, and also looks beyond the current crisis, considering factors that will shape the landscape of the global economy over the medium term, as businesses and households seek to repair the damage. The analysis also outlines the difficult policy challenges presented by the overwhelming imperative to take all steps necessary to restore financial stability and revive the global economy, and the longer-run need for national actions to be mutually supporting. The first of two analytical chapters, "What Kind of Economic Recovery?" explores the shape of the eventual recovery. The second, "The Transmission of Financial Stress from Advanced to Emerging and Developing Economies," focuses on the role of external financial linkages and financial stress in transmitting economic shocks.

Housing Finance and Real Estate Booms

Housing Finance and Real Estate Booms
Author: Eugenio Cerutti,Jihad Dagher,Mr. Giovanni Dell'Ariccia
Publsiher: International Monetary Fund
Total Pages: 38
Release: 2015-06-03
Genre: Business & Economics
ISBN: 9781513552071

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The recent global crisis highlighted the risks stemming from real estate booms. This has generated a growing literature trying to better understand the sources and the risks associated with housing and credit booms. This paper complements and supplements the previous work by (i) exploiting more disaggregated data on credit allowing us to dissociate between firm-credit and household (and in some cases mortgage) credit, and (ii) by taking into account the characteristics of the mortgage market, including institutional as well as other factors that vary across countries. This detailed cross-country analysis offers new valuable insights.