Macro - Country Economic Forecasts - Lithuania
In line with our expectations, real GDP grew by almost 3% y/y in Q1 – Lithuania's strongest quarterly performance in two years – underpinned by a continued robust recovery in private demand and a strong investment performance. Improving sentiment indicators and downward trends in inflation suggest this rebound will continue into H2. However, we believe that still-tight monetary policy and a gradual improvement in the external trade environment will maintain growth at a modest pace of 2% y/y this year, before increasing close to 3% y/y in 2025.
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