The central Bank of Lithuania (LB) has lowered its GDP growth projections by 0.2 percentage point, expecting that Lithuania’s economy will grow 2.9 percent this year.
Back in December, LB forecasted that the country’s GDP growth in 2025 would be 3.1%.
“The Lithuanian economy is not getting knocked off course, it is growing steadily and at a relatively fast pace. Despite all the storms, winds, and potholes, the safety of the Lithuanian economy’s flight is ensured by rising domestic consumption, a slow but steady recovery of exports, a favourable situation on the labour market, and a forecast recovery of investments,” said Gediminas Šimkus, the chairman of LB’s Board of Governors, while presenting the central bank’s latest projections on Wednesday.
According to him, the Lithuanian economy is expected to grow over the next three years: by 3% in 2026 (0.1 point less than forecast in December) and 2027.
Last year, Lithuania’s GDP grew by 2.6%, according to the first estimate of the State Data Agency.
Inflation is expected to reach 3.3% this year, with investment growing by 6.6% and wages by 9.2%.
According to Šimkus, inflation will be mainly driven by energy prices and food, and will also be boosted by wage increases, excise duties on alcohol, tobacco and diesel, as well as CO2 taxes.
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