Macroeconomic Forecast Lithuania

January 2007 | Macroeconomic Forecasts

BMI View: Fiscal performance in 2006 was strong, with data for the first 10 months of the year revealing much faster than expected revenue growth. The central government budget (the measure tracked by BMI, which excludes municipalities but includes social security funds) recorded a surplus of 0.7% of GDP in H1 and BMI expects a full year budget deficit of about 0.3% of GDP. Based on budget plans, the deficit will amount to about 1% of GDP in 2007. However, BMI expects a slightly better outcome owing in part to the expectation of stronger nominal GDP growth than factored into the Ministry of Finance's fiscal calculations.

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