In its latest EU10 Regular Economic Report, the World Bank predicts that economic growth in Lithuania will be 4.3 % in 2011 and accelerate further in 2012, thanks to “low pre-crisis imbalances, deep integration into European production networks, EU funds and solid consumption”.

The bank predicts Lithuania’s growth to be on the very top amongst the EU10 countries.

According to the bank, Lithuania, Estonia and Latvia are likely to build on the export-led upswing as domestic demand continues to recover, with growth of from 3.3 to 4%.

Romania and Bulgaria, where the crisis hit later than elsewhere, will recover some of the lost ground, with growth set to accelerate in 2012 to 3.4% in Bulgaria and 4.4% in Romania.

The performance of Slovakia and Poland is set to remain solid thanks to low pre-crisis imbalances, EU funds, and, in the case of Poland, solid consumption. Growth rates will top 4% both in 2011 and 2012,

Finally, growth in Hungary and Slovenia is likely to increase at a more measured pace of between 2.2 and 3, while the Czech Republic is set to witness a slowdown.

Despite the favorable economic outlook, the EU10's growth prospects remain subject to risks, the study stresses.

"By the end of 2010, only exports had recovered to pre-crisis levels. Private investment remains weak in view of feeble demand, the winding down of construction projects and tight international financial conditions. (..) In addition, the EU10 recovery is still jobless, as labor markets continue to be slack," the World Bank report said.

The EU10 Countries

Eight Central European countries joined the EU in 2004: the Czech Republic,Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia. Bulgaria and Romania joined the EU in 2007. Croatia began EU accession negotiations in October 2005.