The Bank of Lithuania on Tuesday revised its 2024 GDP growth forecast upwards to 2.2 percent, from the previous estimate of 1.9 percent in June.
“After two years of stagnation, the Lithuanian economy is back on the growth path and should accelerate further next year,” Gediminas Šimkus, the central bank’s governor, said while presenting the latest macroeconomic forecasts.
The central bank kept its GDP growth projections for 2025 and 2026 unchanged at 3.1 percent and 3.3 percent, respectively.
It lowered its 2024 annual inflation estimate to 1 percent, from 1.2 percent in June, but slightly raised its forecasts for 2025 and 2026, to 2.5 percent and 2.6 percent, respectively, up from 2.4 percent for both years.
Exports are expected to grow by 1.2 percent this year, 3.1 percent in 2025, and 3.8 percent in 2026, according to the Bank of Lithuania.
Wages are projected to rise by 9.8 percent this year, a slight decrease from the earlier forecast of 10.2 percent, with the growth of 8.5 percent and 8.1 percent expected in 2025 and 2026, respectively.
The central bank forecasts that the unemployment rate will go up to 7.4 percent this year, from 6.8 percent in 2023, before edging down to 7.1 percent in 2025 and 6.9 percent in 2026.
Real private consumption is projected to increase by 3.6 percent this year, with further growth of 3.7 percent in both 2025 and 2026.
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