Latvia has begun to attract businesses, including those from Lithuania, in increasing numbers. This creates competition.
These include transport companies, as well as information and financial technology companies.
„Latvia has the most significant potential right now. For a long time, it was treated as a sleeping beauty, because Estonia had already taken off long ago, we were chasing it, the Latvians were behind, but now, perhaps, Latvia's time is coming,“ said Mauricas on the Žinių Radijas radio show.
According to the economist, Latvia's proactive policy is becoming a „magnet.“
„This is what we did 10 years ago, but we have rested on our laurels.
They have made fewer strange decisions, for example, regarding the second pension tier. The Estonians have sold out, and I think Estonia will be five times better, as I have said many times,“ he said.
According to the economist, the „exodus“ from the second tier could be greater than in Estonia, which reached 30% of savers.
„There were no such favourable conditions for withdrawal there,“ he said, adding that „anything can happen in Lithuania.“
As he considered, there are two scenarios: in Lithuania, the withdrawal may reach 30–40%, or the numbers will be significantly higher.
„And if a more intense process begins, it could be up to 100%.
This is the biggest nightmare and will cause a massive surge in inflation and the economy. The more money that flows into the economy at once, the less it grows, and the more inflation rises.
We will have a huge inflationary shock, similar to what happened in the post-pandemic period when money was printed and injected into the economy, but this will be self-inflicted (editor's note).
Other countries will not have it; we will be the only ones. After that shock, we will emerge with our long-term economic growth potential diminished and our price level significantly increased,“ he said.