LITHUANIAN ECONOMY TO REMAIN AMONG FASTEST GROWING IN THE EU THIS YEAR
Growth of the Lithuanian economy this year will be among the fastest in the European Union and will speed up in particular in the second half of the year when the main Lithuanian export markets are forecast to recover, according to the Interim Economic Forecast of the European Commission unveiled in Brussels on 23 February.
The European Commission estimates that the Lithuanian GDP will grow by 2.3 per cent this year and will be European Union’s second fastest growing GDP after Poland.“Lithuania’s growth spurt in 2011 was excellently evaluated. Despite the economic downturn in Europe and forecasted contraction in the Eurozone economy, Lithuania’s economy will remain among the fastest-growing European economies. The report shows that the Lithuanian economy is essentially in a good shape in these difficult times for the European economy”, said Permanent Representative of Lithuania to the EU, Ambassador Raimundas Karoblis.
According to the European Commission, the Lithuanian economy grew by 5.8 per cent in 2011. The growth is explained by increased competitiveness that led to the rise in exports, which boosted private consumption and investment. The growth slowed down at the end of 2011 due to increased uncertainty in the EU and depressed consumer and business confidence.
The EC forecasts that the acceleration of the Lithuanian economy will depend on the situation in main export markets (in Germany, Russia and two other Baltic states), on the situation in the Eurozone, on high unemployment rates, especially among youth, and on slowing domestic consumption. Exports will likely increase and private consumption will pick up in the third quarter, accelerating GDP growth in the second half of 2012.
