Republic Of Lithuania Staff Report For The Article Iv Consultation

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 60 pages
File Size : 48,9 Mb
Release : 2019-07-31
Category : Business & Economics
ISBN : 9781513509303

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This 2019 Article IV Consultation highlights that the Lithuanian economy has continued to enjoy a strong macroeconomic and fiscal performance, but long-term challenges remain largely unaddressed. The continued strong economic performance suggests that a neutral fiscal stance would have been preferable in the year 2019. The report discusses that Lithuania needs sustained productivity gains to ensure higher living standards and convergence with Western Europe. Macroeconomic and financial stability is a prerequisite for sustained growth and has been achieved through prudent policies and labor market flexibility. Nevertheless, significant and well-identified structural challenges have yet to be addressed with ambitiously designed and decisively implemented productivity-enhancing reforms. The current expansionary cyclical environment and strong fiscal and external positions provide an ideal opportunity to address these challenges. Fintech provides big opportunities to improve financial services and produce high-skill jobs; however, it also brings challenges, particularly related to antimoney laundering. The authorities’ efforts to promote fintech are already delivering results.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 47 pages
File Size : 50,9 Mb
Release : 2015-06-01
Category : Business & Economics
ISBN : 9781513598871

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This 2015 Article IV Consultation highlights that growth in Lithuania has remained resilient, despite challenges in the external environment. Strong domestic demand growth on the back of improving labor market conditions underpinned real GDP growth of 2.9 percent in 2014. Exports held up reasonably well despite Russian import bans. Growth should remain largely unchanged at 2.8 percent from last year in 2015, as positive external factors counterbalance negative ones and domestic demand remains robust. The main policy challenge will be to secure reasonably rapid convergence with living standards in western Europe going forward.

Author : International Monetary,International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 72 pages
File Size : 48,6 Mb
Release : 2021-09
Category : Business & Economics
ISBN : 9781513593197

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Republic of Lithuania: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Lithuania by International Monetary,International Monetary Fund. European Dept. Pdf

With a demonstrated resilience to the crisis and the recovery gaining strength, macroeconomic policies should aim at preserving stability and complementing structural reforms that address long-standing challenges. A medium-term plan to rebuild buffers, support potential growth, and target pockets of vulnerability would help address pre-existing disparities and poverty. Sustained productivity growth, supported by the implementation of politically difficult but needed structural reforms, is the only way to support high wage growth and convergence with Western Europe. Failure to do so could jeopardize Lithuania’s hard-earned competitiveness gains.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 76 pages
File Size : 41,9 Mb
Release : 2023-09-05
Category : Business & Economics
ISBN : 9798400254048

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

The strong post-pandemic recovery led to demand driven inflationary pressures. Supply side bottlenecks and large increases in commodity prices after Russia’s invasion of Ukraine compounded these pressures and resulted in high and persistent inflation. The negative impact on disposable income, higher interest rates and weaker external demand have led to a deterioration of economic activity. If high inflation becomes entrenched, it will erode competitiveness and slow the successful convergence process. The financial system has ample liquidity and capital buffers to address the weakening economic cycle. Higher interest rates have boosted banks’ profitability, but they also bring significant risks.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 60 pages
File Size : 47,9 Mb
Release : 2018-06-25
Category : Business & Economics
ISBN : 9781484363157

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This 2018 Article IV Consultation highlights that the economy of Lithuania picked up steam in 2017, following two years of sluggish growth. Real GDP expanded by 3.9 percent largely because of the acceleration of investment, which benefited from credit growth and high capacity utilization. Private consumption remained the main engine of growth, though it was held back by decelerating real wages. The external current account swung to a modest surplus with exports benefiting from past investments in export capacity and improved external demand. Growth in 2018 is projected at 3.2 percent, mainly because of weaker exports after a very strong performance in 2017 and a slowdown of consumption driven by negative employment growth.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 57 pages
File Size : 44,7 Mb
Release : 2009-12-04
Category : Business & Economics
ISBN : 9781451824223

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Republic of Lithuania by International Monetary Fund Pdf

This 2009 Article IV Consultation highlights that the Lithuanian economy is undergoing a severe adjustment, after years of rapid economic growth and financial integration. With the global financial crisis, the unwinding of the imbalances accumulated during the boom has led to a sharp economic contraction. Capital inflows came to a halt in late 2008 and reversed in 2009, and the current account deficit turned into a surplus. Executive Directors have recognized the authorities’ strong commitment to maintain the currency board arrangement, which has served as a useful macroeconomic anchor.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 54 pages
File Size : 44,8 Mb
Release : 2022-07-28
Category : Business & Economics
ISBN : 9798400214547

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

The strong post-pandemic economic recovery was leading to an overheating economy and demand-side inflationary pressures. The war in Ukraine, including its impact on commodity prices, has, however, negatively impacted economic activity and further intensified inflationary pressures. With higher inflation for longer, policies should aim at preserving stability over the near-term while supporting the economy adapt to a higher interest rate environment over the medium-term. Although the current sociopolitical situation is less conducive to structural reforms, these remain key to ensuring sustained productivity growth that will support high wage growth and faster income convergence with Western Europe.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 45 pages
File Size : 46,8 Mb
Release : 2017-06-30
Category : Business & Economics
ISBN : 9781484305966

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This 2017 Article IV Consultation highlights that the economy of Lithuania has been gathering momentum, following sluggish performance in 2015 and most of 2016. Real GDP expanded by 3.9 percent in the first quarter of 2017 after rising by 2.3 percent in 2016. Strong private consumption, on the back of robust wage growth and low inflation that supported purchasing power, has long been a main driver of growth. Building on recent momentum, economic growth should be strong in 2017, rising to 3.2 percent. Improving external conditions and a turnaround in European funds absorption, as well as high capacity utilization, should spur exports and investment.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 51 pages
File Size : 55,7 Mb
Release : 2014-05-08
Category : Business & Economics
ISBN : 9781484375273

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This 2014 Article IV Consultation highlights that Lithuania’s economy has entered a broadly favorable trajectory of healthy and balanced growth, but income convergence with Western Europe has a long way to go. With inflation at historical lows and well-advanced repair of public finances damaged by the 2008/09 crisis, meeting the entry criteria seems on track. Financial stability has improved further in 2013, with the capital adequacy ratio exceeding 17 percent and steady progress in reducing nonperforming loans. The main challenge is now resuscitating the sluggish private sector credit growth, which could undermine investment and the recovery if it continued for much longer.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 58 pages
File Size : 40,7 Mb
Release : 2010-07-09
Category : Business & Economics
ISBN : 9781455203796

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Republic of Lithuania by International Monetary Fund Pdf

Lithuania experienced a severe output decline. A large consolidation contained the deterioration in the fiscal deficit and safeguarded market financing. Further fiscal consolidation is needed to place deficits and debt on a sustainable path. Tackling the deficit in the social security system and expanding the revenue base will achieve adjustment in a sustainable, pro-growth, and equitable manner. A sustained recovery also hinges on the ability of the economy to rebalance toward tradables. The rising level of unemployment makes it imperative to advance with structural reforms.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 50 pages
File Size : 54,6 Mb
Release : 2016-05-18
Category : Business & Economics
ISBN : 9781484355770

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Republic of Lithuania by International Monetary Fund. European Dept. Pdf

This paper discusses key issues pertaining to the economy of Lithuania. Good policies and favorable business conditions have helped put Lithuania back on the convergence path with western European living standards. Last year, growth took a temporary hit from difficult external environment. External factors caused the price level to fall in 2015, but deflation is unlikely to take root. The external current account moved into moderate deficit in 2015 due to weak export markets and strong domestic demand. Lithuania needs to focus on raising productivity growth through structural reforms, securing continued competitiveness as labor market tightens, and reducing income inequality through fiscal measures while maintaining a prudent policy stance.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 59 pages
File Size : 49,8 Mb
Release : 2008-04-22
Category : Business & Economics
ISBN : 9781451824186

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Republic of Lithuania by International Monetary Fund Pdf

In this report, economic performance of Lithuania over the past decade is discussed. These reflect on EU accession, rapid financial integration, and generally sound macroeconomic policies. Concerns about the rise in external and internal imbalances, characterized by an unsustainable current account deficit, and an increase in domestic inflationary prices, resulting from excess domestic demand are outlined. The findings of the Financial Assessment Stability Program (FASP) are welcome. The Bank of Lithuania’s measures in recent years to strengthen banks’ capital bases and encourage strong risk management are encouraged.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 54 pages
File Size : 40,8 Mb
Release : 2005-03-31
Category : Business & Economics
ISBN : 9781451824117

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Republic of Lithuania by International Monetary Fund Pdf

This 2004 Article IV Consultation highlights that impressive growth continued unabated in Lithuania in 2004. GDP expanded by an estimated 63⁄4 percent in 2004, driven by vigorous private consumption and investment growth. The unemployment rate declined to 101⁄2 percent of the labor force but bottlenecks have developed in certain sectors, exacerbated by migration flows to the European Union (EU) and the United States. Structural reforms continued in 2004, but deeper reforms remain necessary to keep Lithuania on a real convergence path with the EU.

Author : Fondo Monetario Internacional
Publisher : Unknown
Page : 52 pages
File Size : 52,6 Mb
Release : 2005
Category : Competition
ISBN : OCLC:61173829

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Republic of Lithuania by Fondo Monetario Internacional Pdf

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 57 pages
File Size : 51,9 Mb
Release : 2013-03-28
Category : Business & Economics
ISBN : 9781484393970

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Republic of Lithuania by International Monetary Fund Pdf

This 2013 Article IV Consultation IMF staff report focuses on measures that are being undertaken to rebalance macroeconomic growth in Lithuania. The IMF report discusses the requirement of fiscal consolidation to fully rebuild fiscal space. It highlights the important role played by the financial sector in enabling sound credit expansion to support economic growth. Reducing obstacles to the resolution of nonperforming loans could help ease constraints on credit supply. The current account deficit is projected to remain relatively contained over the medium term, reaching about 2 percent of GDP, and financed mostly by foreign direct investment.