Macroeconomic Forecast Lithuania

May 2007 | Macroeconomic Forecasts

Gross external debt reached 63.5% of GDP in 2006, up from 49% in 2005. The increase mainly reflected higher cross-border borrowing by local banks to finance the expansion of their loan books (banks accounted for 44% of total debt), although the central government and corporate sector also took on more foreign debt. With the current account projected at 10.5% of GDP this year and domestic credit growth remaining strong (38% y-o-y in March), we expect the external debt ratio to continue rising, reaching 70.2% by the end of

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