Lithuanian economy in 2012:
From swift recovery
to lower growth

Rokas Bancevičius, Senior analyst, DNB Bank.

This year we celebrate the independence day of Lithuania surrounded by the uncertain economic environment. Lithuania was one of the top growing economies in the EU in 2011 but we are not expecting more of the same in 2012. The key challenges for Lithuania this year will be escalations of debt crisis in the eurozone and the general elections in Lithuania this autumn.

Overall, 2012 will be the year of slower growth and further stabilization in the economy. We expect Lithuania’s GDP to grow in the region between 2.5 – 3 per cent compared to 5.8 per cent in 2011. If Greece crisis is contained and Europe returns to growth at the second half of 2012 Lithuanian economy will end up growing at the higher rate of this range.

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