Macroeconomic Forecast Lithuania

November 2006 | Macroeconomic Forecasts

BMI View: The current account deficit amounted to 10.4% of GDP in January-September 2006, according to preliminary data from the central bank, compared to 6.9% in the same period of 2005. The increase was mainly due to a larger trade deficit. Exports were up by 25.5% y-o-y but imports grew 28%, reflecting both higher energy prices and robust domestic demand. The income deficit also widened, while the surplus on services declined and the current transfers balances barely increased. Net FDI covered a disappointing 24% of the current account deficit. BMI's 2006 current account deficit forecast is expected to be revised up to 9%-9.5% of GDP in our upcoming forecasting round.

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