Lithuania shines ahead of EU entry

In just the latest sign of the country of 3.5 million's economic health, international credit rating agency Standard and Poor's upgraded last week Lithuania's debt ratings. "The upgrade reflects Lithuania's progress in consolidating public finances and its very healthy economic growth," Standard and Poor's credit analyst Moritz Kraemer said in statement. "Preparations for EU accession, now firmly expected in mid-2004, have served as an anchor for reforms that have strengthened the country's economic structure and growth perspectives," the statement said. Lithuania is one of 10 mainly former communist-bloc countries on course to join the EU on May 1, 2004. Although the country struggled to keep up with its Baltic neighbours Estonia and Latvia after all three restored independence from the Soviet Union in 1991, recently its economy has taken strides. Gross domestic product (GDP) grew last year for a second year in a row by 5.9%, surpassing all experts' expectations. The finance ministry had projected 5.1 growth, while the International Monetary Fund and the European Union's executive commission had anticipated only 4.4 and 4% growth respectively. According to the latest data by Eurostat, the EU's statistics agency, GDP per capita in Lithuania stands at 4,236 euros, (4,528 dollars) equal to only 36% of the EU average.