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Bank of Lithuania forecasts rapid economic growth 

May 16, 2012, Invest lithuania
Following faster than expected growth over the first quarter of this year, the Bank of Lithuania lifted its growth forecasts for this and next year. The country‘s GDP is now expected to rise by 3.0% in 2012 and 3.5% in 2013 -- 0.8% and 0.2% higher than the initial forecast.

“The Lithuanian economy is growing faster than expected. So are the investments of Lithuanian businesses in gross fixed capital. With stable growth over the last quarter, Lithuania's GDP will stand out compared to other European countries. This will attract the attention of foreign investors and increase their interest in Lithuania,” Invest Lithuania General Manager Milda Dargužaitė said.

The higher consumption rate at the end of last year and at the beginning of this year has resulted from a moderate increase in the number of employed persons, a gradual rise in wages and the consequent improvement of the population‘s expectations.
Based on the forecasts of the Bank of Lithuania, private consumption will grow by 4.6% this year and 3.1% next year.


Expectations concerning the rise in wages are also somewhat higher than anticipated. According to the latest forecasts, pay should increase by 2.3% this year (the previous forecast was 1.6%) and by 2.6% in 2013 (2.5%).