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International Internet Magazine. Baltic States news & analytics Friday, 25.06.2021, 03:50

Luminor lowers Lithuania's 2019-2020 GDP growth forecasts

BC, Vilnius, 13.12.2018.Print version
Luminor, one of Lithuania's biggest banks, on Thursday lowered its forecasts for the country's GDP growth in 2019 and 2020.

Luminor bank kept its projection for 2018 unchanged at 3.3%.  


The bank's analysts expect Lithuania's GDP growth to decelerate to 2.7% next year and slow further to 2% in 2020, down from its previous projections of 3% and 2.5%, respectively, released in September. 


"Exports fail to show sustainable development, which is a cause for great concern because Lithuania is a small open economy," Indre Genyte-Pikciene, the bank's chief analyst, said at a news conference on Thursday.


"That engine of our (economic growth) worked well for us, but now it stars having problems," she said.   


The bank predicts that Lithuania's average annual inflation will reach 2.6% this year and 2.7% next year before easing to 2.2% in 2020. 


The average net wage growth is projected at 9% in both 2018 and 2019 and at 5 % in 2020. The unemployment rate is expected to decline to 6.2% this year, edge down to 6% next year and stay at this level in 2020.

"We forecast a rather healthy inflation. This is a normal level for Lithuania, a robust, young and developing economy," Genyte-Pikciene said.  

She does not expect households' financial situation to be significantly affected by electricity and natural gas price hikes. 

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