aA
Lithuania‘s economy to grow faster this year, say analysts
© DELFI / Orestas Gurevičius

Lithuania‘s economy will grow faster this year driven by increases in exports and strong domestic demand, according to SEB Bank.

SEB analysts expect that GDP growth in 2016 will be 2.8% and rise to 3.2% in 2017 much faster than last year.

Lithuania‘s exports this year will grow by 3.5% while imports will rise 2%. SEB Bank analysts said import growth would be driven by rapid growth in consumer demand.

“Domestic consumption will remain a robust support for the GDP growth this year. However, the trends, if compared to the last year, have changed - rapidly growing food, non-alcoholic drinks and tobacco sales, while the demand growth of non0-basic necessity goods, at least so far, is not as impressive as during most of the 2015,” said Gitanas Nausėda, the advisor to the SEB president.

“It is becoming obvious that it will be no longer possible in the future to raise the minimum monthly wage at a pace as in 2015-2016, since the minimum monthly wage and the average wage ratio has gotten closer to the optimum 50% level. However, all is not lost – non taxable income level can and should be increased as it has been growing more slowly than the minimum monthly wage recently,” said Nausėda.

The minimum monthly wage is set to rise to €380 this year on July 1, the average nominal wages this year could grow by 7% and next year – by about 6%.

Alfa.lt

|Populiariausi straipsniai ir video

Commission calls for state-level emergency over coronavirus threat

The Lithuanian government's Emergency Commission recommended on Monday that the government declare a...

Tensions with president push PM's rating further down

Lithuanian Prime Minister Saulius Skvernelis ' popularity rating has dropped further down amid the...

President proposes nine legislative initiatives for Seimas spring session

Lithuanian President Gitanas Nauseda has proposed including nine legislative initiatives into the...

People returning to Lithuania from China advised to avoid contact

People who have returned from China where the new COVID-19 coronavirus is spreading are advised to...

EU leaders fail to agree on new budget: Nausėda hopes for decision over month

EU leaders on Friday failed to agree on the Community's 2021-2027 budget amid disagreements over its...

Top news

Commission calls for state-level emergency over coronavirus threat

The Lithuanian government's Emergency Commission recommended on Monday that the government declare a...

Tensions with president push PM's rating further down

Lithuanian Prime Minister Saulius Skvernelis ' popularity rating has dropped further down amid the...

Kazakh student got “Vilnius” tattoo and honed cooking skills

Having won a Lithuanian State Scholarship , Kazakh student Adil Karim from Almaty came to...

Lithuanian businesses might feel coronavirus effect in spring

The coronavirus outbreak in China is already affecting Lithuanian businesses as some companies...

Experience Lithuanian culture: Užgavėnės in Kaunas

In Lithuania, we call the holiday Užgavėnės, which can be loosely translated into ‘Before fasting...

|Maža didelių žinių kaina