Lithuania's central banker says he sees no clear signs of an upcoming new economic crisis but warns about slowing growth.
Vitas Vasiliauskas
© DELFI / Andrius Ufartas

Vitas Vasiliauskas acknowledges that the "income turning to expenses" continues, although differently from ten years ago.

"I could not say yet that a crisis is here around the corner, but we see, with no doubts, certain slowdown aspects," he told journalists on Wednesday after attending a sitting of the parliamentary Committee on Budget and Finance, looking into the circumstances of the 2008 crisis.

Vasiliauskas underlined that the Bank of Lithuania's assessment of economic assumptions and the Ministry of Finance's view, "based on which the 2019 budget is being done", differ.

Vasiliauskas reiterated that "economy goes in cycles" and there was economic downturn up until 2008 after a period of growth.

"Now we see that Lithuania's economy is growing and even exceeding its potential, and this is were our assessment slightly differs from the Ministry of Finance, as we are more cautious and the Finance Ministry is slightly more optimistic. With no doubt, we will face slowdown at some point. The question is how much we are prepared for that," Vasiliauskas said.

The Bank of Lithuania is due to submit its conclusion on the 2019 budget next week.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Cabinet backs retail and bank taxes

The Lithuanian Cabinet on Wednesday backed in principle new taxes on bank assets and retail...

Masiulis claims Grybauskaite asked for MG Baltic's positive coverage

Eligijus Masiulis , ex-leader of Lithuania's Liberal Movement, accused of accepting a bribe, claims...

Offices of the future will have to offer more than the working premises

The office becomes an important tool to attract employees and is now not just the work premises, but...

Ignitis Group plans to delist its subsidiaries from Nasdaq Vilnius

Lithuania's state-owned energy group Ignitis Grupe (former Lietuvos Energija ) is planning to...

Norwegians press exporters to cut prices amid weakening krone

The weakening of Norway 's krone against the euro has not yet hit Lithuanian exports to the...