2012-03-29 16:46

Nordea tones down Lithuania’s GDP growth projections

Analysts of Nordea, the largest Nordic and Baltic financial services group, expect Lithuania’s gross domestic product (GPD) to grow by 2.7 percent this year and by further 4 percent next year.
„Nordea“ bankas
„Nordea“ bank / Redo Vilimo/BFL nuotr.

Last August, Nordea projected the growth of 3.7 percent in 2012 and of 4.8 percent in 2013 for Lithuania.

“There will be no double recession – just a soft landing,” Nordea said in the assessment of Lithuania’s economic outlook in its latest economic overview.

The average annual inflation could reach 3.3 percent this year and 3.8 percent next year. The jobless rate this year would reach 14 percent before going down to 12.5 percent in 2013, the bank's analysts said.

Earlier the analysts projected the inflation of 3.5 percent for 2012 and of 3.8 percent for 2013. The jobless rate was expected to reach 13.8 percent this year and to go down to 12.2 percent next year.

According to the analysts, Lithuania’s fiscal deficit will narrow to 2.7 percent in 2012 before going down to 2.4 percent in 2013.

As projected, the country’s current account deficit will reach 2.3 percent of BDP this year before going up to 2.5 percent next year.

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