Republic of Lithuania: 2024 Article IV Consultation-Press Release; and Staff Report

July 24, 2024

Preview Citation

Format: Chicago

Republic of Lithuania: 2024 Article IV Consultation-Press Release; and Staff Report, (USA: International Monetary Fund, 2024) accessed November 14, 2024

Summary

Lithuania has experienced fast income convergence over the past two decades and the economy is projected to return to growth this year after a shallow recession. However, higher inflation differentials following the shock triggered by Russia’s invasion of Ukraine have had an impact on competitiveness, even though Lithuania entered this crisis with an undervalued real effective exchange rate. At the same time, global fragmentation, long-term spending pressures, eroded corporate profitability, and pre-existing structural challenges in education, healthcare and the labor market continue weighing on productivity and growth. Thus, Lithuania needs prudent policies and decisive structural reforms to support sustained productivity growth and ensure higher living standards and continued convergence.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Financial institutions, Fiscal policy, Fiscal stance, Inflation, Labor, Labor markets, Loans, Prices, Public debt, Real estate prices

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Fiscal stance, Inflation, Labor markets, Loans, Output gap, Pension spending, Real estate prices

Publication Details

Pages:

72
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/242
Stock No:

1LTUEA2024001
ISBN:

9798400284205
ISSN:

1934-7685

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