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The Bank of Lithuania expects the country's economy to grow 2.6%, leaving its earlier projections unchanged.

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© DELFI / Mindaugas Ažušilis

The central bank revised down slightly its estimates of Lithuania's GDP growth in 2017, from 3.4% to 3.3%.

The Lithuanian economy is expected to grow the fastest among the Baltic states this year. Latvia's central bank expects a 2% growth, while Estonia's projection is 1.8%.

The Bank of Lithuania has also raised its inflation estimate from 0.4% to 0.9%.

The central bank's experts say that economic growth will be powered by domestic consumption this year, as well as recovering exports and low interest rates that are stimulating the real estate market.

Raimondas Kuodis, deputy chairman of the Bank of Lithuania, warns, however, that wages in the country have been growing faster than efficiency, which may threaten sustained growth in the long run.