VILNIUS, June 12 (Xinhua) -- The Bank of Lithuania has revised down its 2025 GDP forecast by 0.1 percentage point, expecting the economy to grow by 2.8 percent this year, the Baltic News Service (BNS) reported on Thursday.
In March, the central bank projected a 2.9 percent growth rate for 2025, already less than the 3.1 percent forecast made in December.
Looking ahead, central bank analysts expect Lithuania's economy to maintain a growth rate of 2.8 percent in 2026 and 2.9 percent in 2027, both lower than its previous forecast in March.
The bank has not changed its forecast for average annual inflation this year, maintaining its estimate at 3.3 percent. Inflation is projected to fall to 2.5 percent in 2026 before rising to 2.6 percent in 2027.
High value-added manufacturing and the growing influence of information and communication technology services are emerging as key growth engines. However, a temporary spike in inflation has constrained household purchasing power and slowed consumption growth, thus curbing a potentially stronger economic performance, according to the bank.
The unemployment rate is expected to reach 6.7 percent in 2025, while average wages are expected to grow by 8.7 percent, followed by growth of 8.3 percent in 2026 and 7.7 percent in 2027.
The bank also warned that geopolitical uncertainty and trade tariffs pose risks to the country's exports, as they will dampen the demand for Lithuanian products. ■
