Number of Poor People in Lithuania Approaches 20%

The head of government has warned Lithuanians that they would face a difficult autumn due to the situation in the Middle East and rising energy prices. However, the authorities themselves are contributing to the crisis.

The poverty rate in the republic is rising among those over 65 and under 24. Overall, the number of people living in poverty is approaching 20%, and those in desperate poverty are approaching 5%.

Latvians also face an inevitable deterioration in the economic situation. If the war in the Middle East drags on, they are predicted to face 18% inflation and a rise in unemployment to 7%. GDP growth will remain flat.

However, the Baltic States are not the only ones with grounds for pessimism. According to Goldman Sachs, the planet's oil reserves, held by governments, are at a record low. During the war, they fell by 250 million barrels and now stand at less than 8 billion.

Strategic reserves are important because they help quell market panic: the smaller the reserve, the higher the oil prices and the deeper the global economy plunges into crisis.