FDI Flows Remain Strong

In spite of a presidential veto, the Lithuanian parliament voted to index minimum wage and basic social benefits to inflation. Of the 141 parliamentary members, 79 voted in favour of the proposal and two voted against. Though the move is likely to buoy support for the government among key voting groups - particularly the young and low skilled - the decision to index wages in this way may add further upside pressure to prices. Given that economic growth is expected to slow significantly this year, exacerbating inflationary pressures will add to Lithuania's economic

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