IMF Sees Growth in Lithuania in 2010-2011

International Monetary Fund (IMF) forecasts that Lithuania’s economy will grow 1.6 % this year, making it “the only one of the three Baltic economies expected to be in the positive territory in 2010”. Also, IMF says Lithuania’s economy will continue growing in 2011 by 3.2 %.

IMF forecasts that the Baltic region will see relatively little economic growth until 2012, but picking up again in 2012. Estonia expects its economy to contract -0.1 % this year after an expected 14.5 % drop in 2009. Latvia, which had to take a 7.5 billion euro bailout from the EU and IMF at the end of 2008, expects a 4 % contraction this year after a forecast 18 % drop in 2009.

Last week the First Deputy Managing Director at IMF Mr. John Lipsky met with Lithuania’s Prime Minister Mr. Andrius Kubilius to review recent economic developments and discuss the prospects for Lithuania’s economy.  “In a very difficult environment, the Lithuanian authorities have taken decisive steps that have limited the impact of the international financial crisis and bolstered the country’s credibility with international investors,” Mr. Lipsky said during the meeting.