According to the Ministry of Finance, S&P Global Ratings took into account political risks in the region caused by the continuing war in Ukraine. In the assessment of the credit ratings agency, in the medium term Russia’s war against Ukraine will have an effect on Lithuania’s public finances, economic growth and competitiveness. However, this impact is difficult to predict.
Experts believe that risks will be offset by accelerating economic recovery as a result of domestic consumption and foreign demand, as well as by prudent fiscal policy.
Analysts positively assess Lithuania’s effective economic policy, membership in the euro area and low level of public debt. They forecast that Lithuania’s economy will grow by 2% this year.
On Friday, a similar decision was made concerning Latvia and Estonia, whose credit ratings were downgraded to „A“ and „A+„ respectively with a stable outlook.