European Commission lowers Lithuania's 2025 growth forecast to 2.8 pct
VILNIUS, May 19 (Xinhua) -- The European Commission on Monday revised down its projection for Lithuania's economic growth in 2025 to 2.8 percent, slightly below the 3 percent estimate published in November.
According to the Commission's latest macroeconomic forecast, Lithuania's economy is expected to maintain growth momentum over the coming years, driven by strong private consumption, a moderate recovery in investment, and resilient export performance. However, global trade tensions, ongoing uncertainty, and an unfavorable geopolitical environment are likely to weigh on exports, consumer demand, investment, and price dynamics.
The Commission projects that Lithuania's GDP growth will accelerate to 3.1 percent in 2026.
Inflation expectations for the country have been revised upward, reflecting a sharp increase in energy and food prices, higher excise duties on fuel, alcohol, and tobacco, and persistent inflation in the services sector. Annual inflation, measured by the Harmonised Index of Consumer Prices (HICP), is now forecast to reach 2.6 percent this year, up from the previous estimate of 1.7 percent.
Public debt is also set to rise, with the Commission forecasting an increase to 41.2 percent of GDP this year, climbing further to 43.9 percent in 2026.
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