Macroeconomic Forecast Lithuania

Growing macroeconomic headwinds in Europe and the government's firm adherence to additional fiscal consolidation will see the Lithuanian economy come to a standstill in 2012. The already precarious economic picture is further compounded by the latest scandal and collapse of Lithuania's fifth-largest lender Snoras Bank. Although a change of government in 2012 could presage a period of looser fiscal policy, Lithuania's poor finances mean that any stimulus measures will be short lived. As such, we do not see average annual growth through to 2016 outpacing the average growth rate seen in the five years to 2010.

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