Concern for the state and resilience of Lithuania’s economy—and a desire to find solutions that build shared prosperity—prompted us to revive the Economic Misery Index.
The Economic Misery Index is calculated as the sum of unemployment, GDP dynamics, and price growth. These three components are also used to assess whether a country is facing stagflation. Thus, the higher the index value, the greater the “misery” the country is experiencing—signaling increased stagflation risk. It’s important to note that the Economic Misery Index does not measure a country’s poverty level; it gauges the health of the economy.
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