Finance Ministry: economy remains resilient, inflation will slow down this year faster than projected

Lithuania’s economy continues to demonstrate resilience in the face of challenges. The updated economic development scenario of the Ministry of Finance foresees that economic growth of the country will remain positive this year and will reach 0.5%. In 2023, the average annual inflation is expected to be lower than projected and to reach 8.5%, the Finance Ministry reported.

“Russia’s war against Ukraine and resulting uncertainty continue to affect the economies of Lithuania and of the European Union as a whole. Despite challenges, the national economy demonstrates resilience – Lithuania should remain on the path of growth. Stabilisation of the situation in international energy markets will lead to lower inflation than we had previously predicted in 2023 – price increases are expected to return to a single-digit area. Average wage growth is expected to remain strong this year, to be above the average annual inflation, which is good news for purchasing power of the population,” stated Minister of Finance Gintarė Skaistė.