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

In the assessment of the IMF, even though in the second half-year a slight slowdown in economic development can be felt, domestic demand and favourable competitiveness should ensure a 2.9% growth in Lithuania's economy this year. Next year a moderate – up to 3.1% – acceleration in development is projected due to better borrowing and foreign market conditions. According to the IMF, a positive impetus for Lithuania's economy will be provided by the euro adoption, which the IMF sees as proof of the success of Lithuania's economy.

The report emphasises that Lithuania's financial sector is well-capitalised and liquid, while effective supervision of financial institutions strengthened the system's resilience to shocks. The IMF positively assessed the power given to the Bank of Lithuania to perform prudential, macro-prudential policy.

Lithuania has been a member of the IMF since 1992, and 188 countries belong to this international monetary institution. The cooperation of Lithuania and the IMF is based on the consultation in Article IV of the IMF Articles of Agreement. This Article of the Agreement obligates the member states to implement national and global financial and economic stability, ensuring economic and financial policy. The IMF carries out regular monitoring of the Member States and provides recommendations for achieving and maintaining the aforementioned stability.

IMF forecasts that Lithuania's GDP will grow by 3% this year, and by 3.3% next year. IMF also  forecasts a 2.7% growth of GDP in Latvia (3.2% in 2015) and 1.2% for Estonia (2.5% in 2015).

The IMF representatives visit Lithuania every year to assess its economic situation and the economic development trends. The IMF mission worked in Lithuania this year from 30 September to 6 October.