Analytics, Baltic Export, Economics, Financial Services, GDP, Lithuania

Export volumes have begun to pick up significantly in the second half of 2009 due to the broad-based recovery in the EU. The ministry expects Lithuanian export growth to enter double-digit territory and could make up 13-18% in 2010, informs ELTA/LETA.

"Based on a detailed analysis of export data, we see clear signs of a vigorous and rapid recovery of exports and if this trend continues we will see double-digit growth in 2010," said Lithuania's Finance Minister Ingrida Simonyte.

The successful absorption of EU structural support funds is a crucial underlying factor in the faster-than-anticipated recovery, the Minister said, adding that 2010 would be a banner year for Lithuania in terms of its levels of EU fund absorption.

The Minister also underscored that signs of improvement in the economy mean Lithuania is closer to achieving Maastricht convergence targets for deficits.

"Thanks to the improved GDP forecasts, we have revised the general government deficit target down to 8.1% of GDP in 2010, which is much lower than the previous 9.5% figure," Simonyte said.

She also said the three-% of GDP deficit cap set out in the Maastricht criteria is achievable in 2012.

"Lithuania will continue its drive to consolidate public sector finances, thus maintaining a high level of investor confidence," the Minister said.

Indicators for consumer price stability are expected to fall well within euro adoption criteria in the coming years.

The ministry anticipates annual deflation of 1% in 2010, followed by consumer price inflation of 1% in 2011 and 1.5% in 2012.