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Country Economic Forecasts > Lithuania

  • April 2017
  • -
  • Oxford Economics
  • -
  • 8 pages

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Investment rebounded in Q4 after the smooth transition to a new coalition, lifting GDP growth to 2.3% for 2016 overall and 3% in Q4. We forecast growth will rise to 2.6% in 2017 and then just over 3% a year in 2018-20. Although consumer spending growth will weaken as strong real wage recovery is reined in, and the widening current account deficit will dampen growth in the medium term, rising exports and solid household spending will ensure the continuation of investment-led recovery. Private and public capital spending, boosted by FDI, will also promote productivity growth and the industrial diversification needed to reduce the volatility of GDP growth.

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