Lithuania’s economy may grow at half the pace previously estimated next year on slowing export demand and weakening consumer confidence, SEB Bank said.
SEB, the Baltic nation’s largest lender, cuts its 2012 economic growth forecast for the country to 2 percent from a 4 percent outlook in August, according to an e-mailed statement today.
Lithuania’s export-led growth, the second-fastest in the European Union after Estonia in the third quarter, is in peril because of a deepening debt crisis in the euro area. The Baltic nation’s economy, where exports account for about two-thirds of output, expanded 6.7 percent in the third quarter.
The government’s plans to cut the budget deficit to within 3 percent of gross domestic product next year is “mission impossible” and the shortfall will probably average 3.5 percent next year, SEB said.