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International Internet Magazine. Baltic States news & analytics Wednesday, 20.06.2018, 07:02

Lithuanian FinMin raises 2017 GDP growth forecast to 3.6%

BC, Vilnius, 12.09.2017.Print version
The Lithuanian Finance Ministry expects the country's economy to expand by 3.6% in 2017, driven by robust exports and productive investment, up from the 2.7% GDP growth it projected in March, reports LETA/BNS.

"We see rapid economic growth, declining unemployment and export growth. Our goal is not only to maintain momentum, but also to avoid, through all possible fiscal means, a possible overheating of the economy," Finance Minister Vilius Sapoka said in a press release on Monday.


"To achieve this, we have to implement a responsible fiscal policy – to seek a general government surplus and to ensure that we have sufficient room for maneuver during less favorable periods for the economy," he said.


The Finance Ministry slightly raised its GDP growth forecast for next year, to 2.9% from 2.6%, and left the projections for 2019 and 2020 unchanged at 2.5% and 2.4%, respectively.


The ministry forecasts that household consumption expenditure will increase by 4.2% this year and by 3.7% next year and expects general government consumption expenditure to go up by 1.5% and 1.2%, respectively. Gross fixed capital formation (investment) growth is projected at 6.3% in 2017 and at 6% in 2018.


Lithuania's exports are expected to grow by 9.3% this year and by 6.6% next year. Its imports are forecast to increase by 10.3% and 7.4%, respectively.

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