Lithuania’s economy is expected to grow by 3.3 percent this year, the biggest increase predicted for the Baltic region, according to new data released by Swedbank. The bank, one of the country’s biggest commercial lenders, did not revise its forecast for Lithuania, however analysts did lower their forecasts for the neighboring countries. Estonia’s GDP is now expected to increase by 2 percent in 2016, while Latvia’s will grow by 3 percent. In January, Swedbank forecasted that Estonia’s economy would grow by 2.3 percent, while Latvia would see 3.3-percent growth in 2016.
Lithuania reported growth in exports, retail trade and manufacturing at the beginning of 2016. Private consumption is expected to increase by 4.9 percent. Investments are also expected to rise by 9 percent this year and by an additional 6 percent in 2017. Annual inflation will hit 1.8 percent, according to Swedbank.
“However, even the growing inflation should not undermine the purchasing power of the population, as the average (monthly) salary is forecast to grow by 6.5 percent and 6 percent, respectively, this year and in 2017. The increase of average wages is due to the rapid growth of minimum monthly salary, as well as the lack of employees and the growing negotiating power they have,” the bank said. Lithuania’s economy is expected to grow by 3 percent in 2017, with unemployment dropping to 7.4 percent from 8.1 this year.
