Reflecting a global economic slowdown, the Bank of Lithuania cut its 2016 GDP growth forecast from 2.9 percent to 2.6 percent. However, the central bank is predicting the country’s economy will grow by 3.4 percent in 2017.
Exports are expected to increase by 2.9 percent this year and by 4.8 percent in 2017. Imports, meanwhile, are expected to increase by 3.2 percent this year and by 5.7 percent in 2017. The bank is putting inflation growth at 0.5 percent for 2016 due to falling energy prices and 1.8 percent for 2017.
“Easing unemployment, rising incomes and increased corporate investments will provide a boost to economic growth,” said Raimondas Kuodis, deputy chairman of the bank board. “However, optimism is dampened by foreign trade partners: Russia’s economic outlook is grim, growth in the euro area is slower than expected, there is increased uncertainty about the US and emerging markets growth prospects. Therefore, the latest economic growth forecast is more modest than earlier projections.” The global economy grew by roughly 3 percent in 2015, market watchers estimate.
