Chairman of the Board of the Bank of Lithuania Gediminas Šimkus told journalists on Wednesday that Lithuania’s economy is growing sustainably and should maintain its growth trajectory in the next three years.
Meanwhile, the Bank of Lithuania forecasts that inflation will stand at 3.3% in 2025 due to growing labour costs, energy resource and raw material prices, and taxes raised last year.
The central bank projects private consumption, which grew by 3.7% in 2024, to grow by 4.1% in 2025 and 3.7% in 2026 and 2027, mostly affected by greater labour income.
The average wage is expected to increase by 9.2% in 2025, 8.3% in 2026 and 7.7% in 2027. According to Šimkus, labour productivity has increased and offset Lithuania’s reduced business competitiveness that was affected by growing wages.
What is more, the central bank forecasts that unemployment will decrease to 6.8% in 2025, 6.7% in 2026 and 6.6% in 2027. Employment should grow by 0.3% in 2025, 0.3% in 2026 and 0.2% in 2027.
Lithuania’s export growth is expected to be more modest than before the COVID-19 pandemic and to increase by 1.6% this year, followed by 3.6% growth in both 2026 and 2027.