Analysts at SEB Bankas estimate that Lithuania's maximum economic losses in case of Russia's complete import ban could reach up to 5 percent of the gross domestic product, noting that such losses would be quite painful.
Gitanas Nausėda
© DELFI / Kiril Čachovskij

"The current food product embargo will reduce Lithuania's GDP by 0.8 percent. A possible halt in used vehicle exports may reduce GDP by further 0.1 percent. A halt in exports of all other goods would reduce GDP by 4.1 percent more," Gitanas Nausėda, an adviser to the president of SEB Bankas, said at a news conference on Tuesday.

The analyst underlined that this was the largest possible GDP decline due to Russia's trade restrictions if the country's businesses failed to sell their products in other markets.

"If absolutely all groups of goods were included, our maximum losses might amount up to 5 percent of the gross domestic products. This is quite painful," he said.

In a worst-case scenario, Lithuanian businesses would have to cut their production and staff, Nausėda said.

BNS
Naujienų agentūros BNS informaciją skelbti, cituoti ar kitaip atgaminti visuomenės informavimo priemonėse bei interneto tinklalapiuose be raštiško UAB "BNS" sutikimo neleidžiama.

Government renounces banking asset tax but proposes additional corporate tax

Lithuania's government is leaning towards "burying" the planned banking asset tax and is proposing...

Lithuania wants Rail Baltica infrastructure to be owned by individual states

Lithuania is seeking that the European standard-gauge railway Rail Baltica 's strategic...

Finland's proposal leads to steeper EU funding cuts for Lithuania

A long-term budget proposal by Finland , which holds the EU's rotating presidency, may...

Lithuania is planning to test modern experimental battery energy storage

Lithuania is planning to test in real time a modern experimental battery energy storage (BES) system...

Tomasevski: Transport minister won't approve railway electrification contract

Lithuanian Transport and Communications Minister Jaroslav Narkevic , delegated to the post by the...