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2014.02.27 11:22

European Commission forecasts no obstacles for Lithuania to adopt euro

DELFI|The Lithuania Tribune2014.02.27 11:22

The winter 2014 European Economic Forecast published by the European Commission on 25 February indicates that Lithuania should not encounter any obstacles in fulfilling Maastricht criteria necessary to adopt the euro in 2015, writes The Baltic Course with reference to the news agency ELTA.

 The winter 2014 European Economic Forecast published by the European Commission on 25 February indicates that Lithuania should not encounter any obstacles in fulfilling Maastricht criteria necessary to adopt the euro in 2015, writes The Baltic Course with reference to the news agency ELTA.

The economic forecast predicts that budget deficit in 2014 will stand at 2.3 per cent, while next year it will drop to 1.7 per cent of GDP.

The European Commission forecasts 1.1 per cent inflation for Lithuania this year, while in 2015 inflation should increase to 1.9 per cent.

According to the forecast, Lithuania’s debt should not exceed 42.2 per cent, and in 2015 it will account for 41.4 per cent.

Other economic indicators forecasted for Lithuania are also rather good. Thus, the winter 2014 European Economic Forecast predicts that Lithuania’s GDP will grow by 3.5 per cent in 2014, which is lower by 0.1 per cent compared to the autumn forecast, yet it shall be the second highest growth predicted in the European Union (EU).

The highest economic growth in the EU is forecast for Latvia. According to the European Commission, Latvia’s economy will grow by 4.2 per cent, while EU average is 1.5 per cent and euro area average is 1.2 per cent.

The forecast remains based on the assumption that the implementation of agreed policy measures at the EU and Member State level sustains improvements in confidence as well as financial conditions and advances the necessary economic adjustment in Member States, by increasing their growth potential.