The forecast of the European Commission

In the coming two years Lithuanian economy will be the fastest growing among all 25 member states of the enlarged EU, according to the forecast of the European Commission. EC forecasts 6.9% Lithuania’s GDP growth in 2004 and 6.6% - in 2005 and says that the economy of Lithuania’s major trade partners is expected to revive, which will stimulate the growth in exports, which are predicted to grow by 8.8% in 2004 and 9% in 2005. Consumer prices will rise 1% and inflation will reach 2.2% in 2005. Budget defficit is forecast at 2.8% of GDP in 2004 and at 2.6% in 2005. Unenployment will reach 11.5% in 2004 (a decline from 12.7% in 2003) and 10.7% in 2005.