Little Scope For Improving Fiscal Outlook

While some improvement to Lithuania's ailing fiscal position has been registered in Q110, we maintain our view that the 3.0% of GDP deficit target remains unattainable by 2012. A weak coalition government and limited scope to improve revenue intakes over the coming years mean that the ongoing austerity programme will remain the only measure for gradually reining in the fiscal shortfall, which we see staying above 3.0% of GDP until 2013.

To read the full article, please choose one of the following options: