aA
The European Commission has lifted its forecast for Lithuania's GDP growth for this year and also expects the country's economy to expand faster next year.
VMG gamykla
VMG gamykla
© Bendrovės archyvas

The EC expects Lithuania's GDP to grow 3.1 percent this year, which is 0.4 percentage points more than forecast in May (2.7 percent).

In its summer forecasts, the EC states that "a strong labor market situation and the reduction in labor taxes supported private consumption, while a pick-up in the usage of EU funds boosted investment and exports proved resilient in the face of negative global trade prospects."

And Lithuania's economy should expand 2.4 percent in 2020, unchanged from the previous forecast. "Domestic demand is projected to further drive economic growth. On the other hand, a weak outlook for Lithuania’s main trading partners is expected to lead to a more notable deceleration in export growth," the Commission said.

The average annual inflation forecast was lifted by 0.1 percentage points to 2.2 percent for this year, and the 2020 forecast was left unchanged at 2.1 percent.

According to the EC, "as oil prices are assumed to fall, energy prices are expected to put less upward pressure on inflation than in recent years, despite the recent increases in gas and electricity prices for households. Dynamic wage growth is expected to continue to have a strong impact on service prices, accounting for about half of headline inflation."

Latvia's economy is expected to grow 3 percent this year and 2.8 percent next year, and growth in Estonia should stand at 2.9 and 2.3 percent respectively.

The EU economy should expand 1.4 percent this year and growth is expected to step up 1.6 percent next year, with growth rates of 1.2 and 1.4 percent respectively expected in the eurozone.

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

Minister: budget deficit to narrow, debt-to-GDP ratio to stabilize in 2021

The Lithuanian state's 2021 budget bill has been drafted with the aim of reducing the general...

One in 3 Lithuanians feels anxious about money

Thirty-nine percent of Lithuanians feel anxious about their finances every day, which adversely...

Simonyte: key budget issue is what to do with borrowed money (1)

The key question related to Lithuania's next year budget is what will be done with borrowed money...

Minister: Lithuania financially capable of withstanding another coronavirus outbreak

Lithuania would be financially capable of withstanding another coronavirus outbreak, Finance...

A new commercial bank has launched operations in Lithuania

PayRay , a Lithuanian financial sector company, has started a new page of its business service...

Top news

Parliament election: home voting starts, voting at special points continues

People eligible to vote at home will be able to cast their votes in the Lithuanian parliament...

Why Europe wins

Everyone writes off the European Union as dull and prone to fracture. But the last decade shows that...

442 new coronavirus cases (1)

On Thursday, 424 new COVID-19 cases were detected in Lithuania . In total, 9104 coronavirus cases...

Three of 5 new coronavirus fatalities recorded in Siauliai County

Three of Lithuania 's five latest coronavirus fatalities were elderly residents of Siauliai County...

David Leask | D+ nariams

Brexit might break Britain. What will Scotland do?

Scotland, six years after its last crack at independence, is hankering to be a “global good gal,”...

|Maža didelių žinių kaina