Consumer confidence: the case of the Baltic states during Covid-19

Purpose – to discuss the phenomenon of consumer confidence as well as importance and ambiguity of consumption with respect to quality of life in the Baltic States during COVID-19 pandemics. Design/methodology/approach – The analysis and synthesis of existing theories and researchers is provided. The statistical data is evaluated. Finding – private consumption accounts for about half of GDP in the Baltic countries. During pandemics consumers have remained more optimistic in Lithuania compared to Estonia, Latvia and average of the EU. Lithuania experience a lowest decrease in the GDP growth among countries of the EU. Research limitations/implications – Research is limited by the inaccessibility of statistical data. Very few indicators are up to date. Practical implications – Consumers and their power are often neglected. The results may be used to analyze the decisions needed to be taken to reduce the impact of pandemics on economics. The consumer confidence allow not only to analyze the current situation but to look into future too. This indicator is updated faster than key determinants of consumption. It is valuable for policy makers. Originality/Value – The prevalence of consumerism and importance of consumers in economies and society have had a growing role. Then worldwide COVID-19 pandemics hit. All the consumers and economies have been affected. They keep fighting the pandemics and its consequences. It is the ongoing crisis not only on the health aspect but economic and social too. Despite the evident impact there is a lack of empirical research and up to date statistics. It is important to analyze the situation in order to make sound decisions on political economy and get out of the crisis more fluently. Consumers are at the heart of modern economies and their confidence may not only reveal the effects of crisis but also how to reduce the negative consequences. Consumer influence is growing in modern economies. Nevertheless, there is a lack of research on consumer confidence not only in the Baltic countries but also in the European Union.