Macroeconomic Forecast Lithuania

August 2005 | Macroeconomic Forecasts

The current account deficit stood at 5.6% of GDP in Q105, according to the central bank, while preliminary (and often revised) monthly data suggest the gap widened to over 7% of GDP by May, following a sharp increase in oil imports in April. Export performance has been reasonably good so far this year, with receipts growing by 27% y-o-y in local currency terms in January-May against import growth of 19%. And EU transfers have risen significantly, helping to reinforce a declining trade deficit. Notwithstanding these developments, the pace of domestic demand growth still suggests to us that the current account deficit will reach about 7.9% of GDP this year

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