Bank Of Lithuania Improves Country’s GDP Dynamics Forecast For 2023
According to new estimates from the Bank of Lithuania, the Lithuanian economy would contract by 0.6% in 2023 and rise by 2.1% in 2024, said Gediminas Šimkus, Chairman of the central bank’s board, during a press conference.
According to the June forecast, GDP will decrease by 1.3% in 2023 while increasing by 2.7% in 2019.
« Lithuania’s GDP dropped by 2% in the first quarter, prompting many to raise concerns about a possible recession, a financial crisis, and other problems. We had a pleasant surprise of 3% growth in the second quarter. We believe that we need to approach this from a systems perspective. Our evaluation remains the same; there is no cause for concern, but the first 3% of the year is still winter, » said Šimkus. He noted that the economy is still weak, business activity is subdued, and the year’s end result will be regrettably negative, even if just marginally.
Inflation in Lithuania is anticipated to be 2.6% in 2019 and 8.8% in 2020. Estimated investment increase for 2023 and 2024 is 6.8% and 3.3%, respectively.