"The Lithuanian economy remains resilient to the ongoing European sovereign debt crisis and continues to grow albeit at a slower pace than in 2011," Nordea said in its latest Economic Outlook report published on Tuesday.
It expects Lithuania's economic growth to accelerate to 3.5 percent in 2014.
Lithuanian households' financial situation is gradually improving, but practically all income growth is being eaten up by inflation, Nordea's analysts said. They expect the country's annual inflation to reach 3 percent this year, ease to 2.8 percent next year and rise back to 3 percent in 2014.
Nordea expects that Lithuania's fiscal deficit will narrow to 2.7 percent of GDP this year, meeting the Maastricht criterion, but rising prices for energy resources will be a key obstacle to the country's aspirations to join the euro in 2014. Lithuania's fiscal deficit is forecast to reach 3 percent next year and stay at this level in 2014.
