Republic of Lithuania: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Lithuania

Volume/Issue: Volume 2025 Issue 258

Publication date:

ISBN: 9798229021487

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Summary

Lithuania’s economy has proven resilient to multiple shocks in recent years and grew strongly in 2024. However, new challenges are emerging and long-standing issues still require attention. Defense spending is high and set to rise further, adding to other existing long-term spending pressures including from pensions. Income convergence with other euro area countries has been stalling lately while productivity growth remains weak. The global economic environment remains highly uncertain.