Analytics, Economics, EU – Baltic States, Financial Services, Inflation, Lithuania

"In order to claim a full membership of the euro zone and adopt the euro, as it is known, Lithuania must meet the Maastricht criteria which we do not expect to fulfil in 2013 or 2014, neither in inflation nor the public debt," says Rodzko.

The Bank of Lithuania says that real gross domestic product (GDP) will grow at a slower pace than expected but its development will remain sustainable. Price shocks are not expected, inflation will remain moderate.

Lithuania's GDP is expected to grow by 3.1% next year. This year it increased by 3%, reports LETA/ELTA.

Economists of the Bank of Lithuania say that the investment growth is likely to be modest. It is estimated that that in 2012 the investment will increase by 2.3% and in 2013 by 6.2%. It is less than the average annual increase since the start of data collection.

"Uncertainty about the future limits consumption and forces businesses to delay the decisions for development, therefore the consumer and investment outlook seems to be worse than previously expected," says Director of Economics and Financial Stability at the Bank of Lithuania, Ruta Rodzko.

Due to rapidly rising prices of food, fuel and manufactured goods, the inflation in 2012 is expected to be higher than previously forecasted. In 2012 it should stand at 3.2% and in 2013 at 2.8%.