Lithuania sees economy growing by 1.7% in 2024

Lithuania expects its economy to expand by 1.7% next year, following a soft landing in 2023, according to the latest update on the Finance Ministry’s Economic Development Scenario. The same growth was projected by the ministry in September.

Inflation is set to continue to ease in 2024, from 8.8% this year to 2.8%, the ministry said. The unemployment rate is expected to remain stable at 6.6%, while wage growth should be fast enough to exceed 7.5%.

“In 2024, people’s purchasing power will improve, which will boost domestic consumption,” Finance Minister Gintarė Skaistė said in a statement.

The Finance Ministry’s economic scenario forecasts that Lithuania’s gross domestic product (GDP) will shrink by 0.4% this year. It should grow annually by 2.9% in both 2025 and 2026.