Growth forecasts
© Shutterstock nuotr.

Lower levels of growth in the eurozone as a result of Brexit will negatively affect the growth of Lithuanian exports cutting economic growth rates in the next two years, Danske Bank said yesterday.

Danske Bank experts lowered their growth forecasts for the Lithuanian economy from 2.8% to 2.5% in 2016 and down from 3.2% to 2.7% in 2017. It also lowered its forecasts for this year‘s eurozone economic growth from 1.6% to 1.2%, and from 1.7% to 0.7% next year.

The bank said the United Kingdom‘s decision to leave the EU will affect all community economies, political and economic insecurity will weaken the eurozone‘s corporate investments and consumption.

“The eurozone is the main Lithuania‘s export partner where almost half of Lithuana‘s goods and services are exported. However, the prevailing turmoil and insecurity in the single currency zone currently negatively affects corporate investment and consumption. And this affects Lithuania‘s exports,” said Rokas Grajauskas, Danske Bank chief economist in the Baltic countries.

“Lithuania is the most remittances-dependent country in the EU, while the United Kingdom is the main source of remittances. A quarter of all transmissions of emigrants‘ money are coming from this country. However, the expected recession in the United Kingdom and the falling pound can reduce the volume of remittances and thereby reduce consumption in Lithuania by at least a few tenths of a percent,” said Grajauskas.

Skusevicius appointed ambassador to Canada

Lithuanian President Gitanas Nauseda on Thursday appointed Deputy Foreign Minister Darius Skusevicius...

MPs reject President Nauseda's second veto

The Lithuanian parliament overrode on Thursday a presidential veto on its decision to add two road...

Ambassadors to NATO and Russia recalled

President Gitanas Nauseda recalled on Wednesday Lithuania's ambassadors to Russia, NATO and UNESCO...

European greens: Sinkevicius not our candidate but has good ideas

Lithuanian's European commissioner -designate Virginijus Sinkevicius is not their candidate but he...

Zemaitaitis ousted as vice-speaker of parliament

Remigijus Zemaitaitis , the Order and Justice party's leader, has been ousted as vice-speaker of...