Republic of Lithuania: 2026 Article IV Consultation-Press Release; and Staff Report
Republic of Lithuania: 2026 Article IV Consultation-Press Release; and Staff Report
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Volume/Issue:
Volume 2026
Issue 221
Publication date:
ISBN: 9798229053211
$20.00
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Topics covered in this book
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Finance , Labor , Economics- Macroeconomics , Public Finance , Labor markets , Unemployment , Energy prices , Productivity
Summary
Lithuania has sustained strong growth despite persistent global headwinds. Near-term activity will be supported by expansionary policies amid strong credit growth and despite the adverse energy price shock. Looking ahead, maintaining momentum will depend on shifting to durable sources of growth set in a predictable policy course— which carries an added premium amid high external uncertainty. Rising risks to fiscal sustainability, along with population aging, weak productivity growth, and persistent skills mismatches, call for reforms that lift productivity and safeguard fiscal sustainability.
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