Lithuania Central Bank Lowers 2012 Economic Forecast to 2.2%
Lithuanian economic growth may slow more than previously estimated as decelerating growth in export markets curbs demand for the country’s products and domestic consumption wanes.
Gross domestic product will probably expand 2.2 percent this year, compared with a November forecast of 3.5 percent, the Vilnius-based Lietuvos Bankas said in an e-mailed statement today. Economic growth may accelerate to 3.3 percent in 2013, it said.
The Baltic nation’s economy is slowing from the second- fastest pace in the European Union of 4.3 percent in the fourth quarter as the euro region’s debt crisis damps demand for the country’s goods. The economy grew 5.8 percent in 2011.
“Lower economic growth is projected in the main trade partners of Lithuania, whereas confidence indicators in Lithuania and foreign countries are also deteriorating in the context of uncertainty related to indebtedness problems in some euro-area countries,” the central bank said. “Such a situation damps the expectations of Lithuanian households and enterprises, limits investment plans of enterprises, constrains employment growth and strengthens household saving.”
The Finance Ministry estimates the economy may grow 2.5 percent this year.
The central bank cut the inflation rate forecast for this year was cut to 2.1 percent and set the 2013 rate estimate at 2.4 percent.
To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net
To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net
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