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Economy / Lithuania


January 2012 | Risk Summary

High levels of unemployment have prevented a meaningful recovery in our short-term political risk ratings for Lithuania. Indeed, although unemployment reportedly fell to 14.8% in Q311, down from 15.6% in Q2 and 17.2% in Q1, our social stability score for the country remains at a lowly 57.5. Youth unemployment, in particular, is a concern with 31.7% of people aged 15-24 unable to find work in Q311. We believe that 2012 is shaping up to be another challenging year for the Lithuanian economy, which could yet exacerbate existing social pressures and could severely punish the centre-right government at the polls later this year.

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