Lithuania's economy could suffer a hit of up to 0.8% as the United Kingdom negotiates its divorce with the European Union, according to Lithuanian prime minister.

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Algirdas Butkevičius
© DELFI / Domantas Pipas

Companies exporting their production to Britain have already suffered losses due to the depreciated British Pound, Algirdas Butkevičius told LRT radio on Thursday.

"Our companies that export to Great Britain are now calculating whether it is still possible to export with the dropped value of the Pound," Butkevičius said.

As the UK begins to negotiate its secession from the European Union, the effects could cut Lithuania's GDP between 0.5% and 0.8%, according to the prime minister.

"If negotiations started immediately, their economic effects for us would be about 0.5% of GDP. This is the lowest point. It can go up to 0.8%. That is not insignificant," Butkevičius said.

In 2015, the UK accounted for 4.5% of exports of Lithuanian goods and 6.6% of total exports from Lithuania.

Lithuania's economy is expected to grow between 2.3% and 2.6% this year and 3.5% in 2017.

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