Due to sluggish demand of Lithuanian goods and services in export markets, the central bank also revised GDP growth projections to 1.8% for 2024, compared with the earlier forecast of 2.1% GDP growth made in September.
According to the Bank of Lithuania, people’s income has increased faster than prices. Wages have increased by 12.2% in 2023 and are expected to increase by 10% in 2024. Private consumption has contracted by 1.7% this year, but is forecast to grow by 2.4% in 2024.
Lithuanian exports are forecast to grow by 0.5% in 2024 after a decline of 5.3% in 2023.
Unemployment rate has not changed in Lithuania and stands at 6.7% in 2023, and is estimated to reach 6.5% in 2024.
The central bank estimates that investments increased by 8.6% in 2023 and will grow by 4% in 2024.