DNB Bank's chief economist for the Baltic states Jekaterina Rojaka says that shock therapy will be for the better of Lithuania's economy.
© DELFI / Tomas Vinickas

The comforting news is that the growth of Lithuania's economy in the second half of this year should exceed that of H1: farmers again predict a good harvest, wages are growing fast, unemployment level is going down, and all this should contribute to gradually recovering domestic consumption. Export statistics is likely to be better thanks to new markets. Negotiations on exports of dairy and other products to China have finally moved from a dead-end.

"It seems that this shock therapy that Lithuania's economy experienced last year and whose consequences are visible still, got both businesses and public officials to mobilise. In the future, of course, it would be better to do without such kicks in the back or somewhere lower," the economist says.

"What can we expect in the second half of 2015? Globally prevailing uncertainty will not disappear very soon, therefore, one should not expect any major external push. However, there is some good news: the Western markets have been showing signs of recovery. The upcoming denouement of the Greek crisis will also contribute to stabilisation of economy in the eurozone. Yet, if Lithuania wants to see better growth rates, its economy will have to double the efforts. It is obvious that further growth is not possible without material investments," Rojaka says.

Statistics Lithuania said that compared to the same period of 2014, the real GDP change in Q2 of 2015 stood at 1.3 percent (seasonally and working day unadjusted - 1.3 percent). Compared to Q1 of 2015, the real GDP change stood at 0.6 percent.

In the first six months of 2015, GDP at current prices amounted to EUR 17,511 million. Compared to H1 of 2014, the real GDP change stood at 1.4 percent (seasonally and working day unadjusted - 1.2 percent).

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