Analytics, Banks, Economics, Financial Services, GDP, Inflation, Lithuania
International Internet Magazine. Baltic States news & analytics
Thursday, 28.03.2024, 20:09
Luminor lowers Lithuania's 2019-2020 GDP growth forecasts
Luminor bank kept
its projection for 2018 unchanged at 3.3%.
The bank's analysts expect Lithuania's GDP growth to
decelerate to 2.7% next year and slow further to 2% in 2020, down from its
previous projections of 3% and 2.5%, respectively, released in September.
"Exports fail to show sustainable development,
which is a cause for great concern because Lithuania is a small open
economy," Indre Genyte-Pikciene,
the bank's chief analyst, said at a news conference on Thursday.
"That engine of our (economic growth) worked well for
us, but now it stars having problems," she said.
The bank predicts that Lithuania's average annual inflation
will reach 2.6% this year and 2.7% next year before easing to 2.2% in
2020.
The average net wage growth is projected at 9% in both 2018
and 2019 and at 5 % in 2020. The unemployment rate is expected
to decline to 6.2% this year, edge down to 6% next year and stay at this
level in 2020.
"We forecast a rather healthy inflation. This is a
normal level for Lithuania, a robust, young and developing economy," Genyte-Pikciene
said.
She does not expect households' financial situation to be
significantly affected by electricity and natural gas price hikes.