"Swedbank" Maintains Forecast: Lithuanian Economy Expected to Grow 3%

Swedbank maintains its forecast for Lithuania's economy to grow by 3% this year, though it anticipates a slowdown to 2.3% in the following year. This deceleration is attributed to diminishing consumer spending.

Inflation is projected to surpass 6% in the immediate future, a notable increase from previous estimates. The bank's economists also predict that average wages in Lithuania will increase by 8.6% this year, with growth moderating to 7% next year. Furthermore, net immigration is expected to decrease in the coming years, and employment has likely reached its peak.

Economists at Swedbank also point to several risks that could cloud the otherwise positive economic outlook. Global trade may be hampered not only by supply chain disruptions but also by increased tariffs and other trade barriers. Difficulties in shipping and oil transit through the Strait of Hormuz are also cited as potential impediments.