Vilnius Under Pressure

While Lithuania managed to muddle through the 2009 recession without experiencing any large-scale upticks in social unrest, we caution that the threat of strike action will remain elevated well into 2010. Indeed, with unemployment having hit 13.7% in 2009 (up from 5.8% in 2008), and real wages likely to remain under pressure as Vilnius attempts to correct its external asymmetries through a prolonged internal devaluation, we cannot rule out the possibility of further public unrest over the coming quarters.

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