Lithuania has raised its economic growth forecast for this year and next as export growth accelerates. Gross domestic product will probably rise 5.8% this year, compared with a September forecast of 2.8%, the Finance Ministry said. Growth will slow to 4.7% next year, compared with a previous estimate of 1.2%. The budget deficit will probably average less than 5.3% of GDP this year, compared with a budget plan of 5.8%.
In the long run, the continued rapid growth in exports and economic recovery spreading to other sectors will inevitably grow wages. The projection of average wage for 2011 was increased by LTL 61 up to LTL 2,064, and LTL 188 for 2013. The fastest wage growth - 7.8% - is likely to be observed in 2014 on a fall in the labour force supply. The Finance Ministry predicts that this year the unemployment level will drop to 14.9%. The increased consumer purchasing power will also contribute to a general level of price growth in later years. In 2011-2014, average consumer inflation is expected to remain stable at about 3.3% due to different factors.