Republic of Lithuania: 2019 Article IV Consultation-Press Release; Staff Report

July 31, 2019

Preview Citation

Format: Chicago

Republic of Lithuania: 2019 Article IV Consultation-Press Release; Staff Report, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This 2019 Article IV Consultation highlights that the Lithuanian economy has continued to enjoy a strong macroeconomic and fiscal performance, but long-term challenges remain largely unaddressed. The continued strong economic performance suggests that a neutral fiscal stance would have been preferable in the year 2019. The report discusses that Lithuania needs sustained productivity gains to ensure higher living standards and convergence with Western Europe. Macroeconomic and financial stability is a prerequisite for sustained growth and has been achieved through prudent policies and labor market flexibility. Nevertheless, significant and well-identified structural challenges have yet to be addressed with ambitiously designed and decisively implemented productivity-enhancing reforms. The current expansionary cyclical environment and strong fiscal and external positions provide an ideal opportunity to address these challenges. Fintech provides big opportunities to improve financial services and produce high-skill jobs; however, it also brings challenges, particularly related to antimoney laundering. The authorities’ efforts to promote fintech are already delivering results.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Crime, Economic and financial statistics, Employment, Financial institutions, Government finance statistics, Labor, Labor markets, Loans, Wages

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Baltics, Center, CR, Current account, Debt, Europe, Executive board assessment, Foreign currency, Global, Government finance statistics, Government's reform agenda, Healthcare reform, Increase labor force participation, ISCR, Labor market, Labor markets, Lithuania's current account, Loans, Potential GDP, Reform effort, State privatization Fund, Wage growth, Wages, Western Europe

Publication Details

Pages:

60
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/252
Stock No:

1LTUEA2019002
ISBN:

9781513509235
ISSN:

1934-7685

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