IMF Staff Country Reports

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

Publication Date:

July 24, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Country Report No. 2024/242

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

Frequency:

regular