aA
Lithuania's economic recovery after the coronavirus crisis will be more rapid than in other European Union’s (EU) countries thanks to the flexibility of Lithuania’s business, the low level of the country’s debt and responsible fiscal policy implemented before the crisis, Finance Minister Vilius Sapoka has said.
Vilius Šapoka
Vilius Šapoka
© DELFI / Kiril Čachovskij

“Given that our business is definitely more entrepreneurial than that in older EU member states, Lithuania’s recovery will definitely be more rapid and substantial, even though the decline of the country’s economy will be broadly similar to that in other EU countries,” he told the Ziniu Radijas news radio on Thursday.

The current situation was highly uncertain, he said adding that the stability of the country’s economy before the crisis had a positive impact.

“We had the highest credit rating in our history, debt levels of our households, the general government and business were low in comparison to other countries and the country’s finances were managed in a responsible manner,” Sapoka said.

The previous crises had shown that the country’s business “is able to adapt to the situation rapidly”, the minister said.

“The majority of businesses will definitely emerge stronger from this crisis as they will discover new markets and create new products,” he added.

The European Commission sees Lithuania's gross domestic product (GDP) contracting by 7.9 percent this year due to the COVID-19 pandemic and in particular its dampening effect on domestic demand.

The projected economic slump in Lithuania is steeper than the declines forecast by the Commission for Latvia’s and Estonia’s GDP, which are expected to fall by 7 percent and 6.9 percent, respectively.

However, the recovery of Lithuania’s economy next year is now expected to be the most rapid among the Baltic countries. The Commission estimates that Lithuania’s GDP will expand by 7.4 percent, Latvia’s GDP – by 6.4 percent and Estonia’s GDP – by 5.9 percent in 2021.

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

Skvernelis: no plans to put economy on hold if 2nd coronavirus wave comes (1)

The whole economy or its individual sectors in Lithuania will not be put on hold if a second...

Lithuania plans to establish anti-money laundering competence center

Lithuania plans to establish an anti-money laundering competence center as the Nordic and Baltic...

Minister: direct EU payments to farmers should be capped at EUR 100,000

Direct EU payments to Lithuanian farmer s in 2021-2027 should be capped at 100,000 euros,...

To start or not to start fintech company during recession?

Microsoft, IBM, HP, Disney, FedEx, 3M. What do these companies have in common? They started their...

Lithuania asks Slovenia to hand over detained businessman Kucinskas

Lithuania's Prosecutor General's Office has asked Slovenia to hand over Vidmantas Kucinskas , the...

Top news

Analyst: Tikhanovskaya fled to Vilnius, a logical choice, for safety reasons

Svetlana Tikhanovskaya , the leading opposition candidate in Belarus' presidential election, fled her...

Party leaders open up on how Lithuania should respond to events in Belarus

A wave of bloody protests was set off by the Belarusian government announcement that President...

Minister: arrivals to undergo more thorough checks on Lithuanian-Polish border

Lithuania's police officers and border guards will more thoroughly check incoming people on the...

Skvernelis: no plans to put economy on hold if 2nd coronavirus wave comes (1)

The whole economy or its individual sectors in Lithuania will not be put on hold if a second...

Arrivals from 5 new countries must isolate in Lithuania

Mandatory 14-day self-isolation for Lithuanians returning from Poland , the Netherlands , Iceland...

|Maža didelių žinių kaina