SEB upholds 1.5% GDP growth projections for 2024

SEB Lithuania has published its latest economic projections on Tuesday. The bank upheld its previous forecast of 1.5% gross domestic product (GDP) growth for Lithuania in 2024 and 2.8% for 2025. Earlier projections were originally issued in November 2023.

SEB bank economist Tadas Povilauskas stated at a press conference that the economic forecast has changed little.

Projections of average annual inflation calculated based on the Harmonised Index of Consumer Prices (HICP) were upgraded from 2.8% to 2% for 2024. This is based on the assumption that energy and other raw material prices will not increase.

Unemployment is forecast to increase from 6.6% to 6.8%, but this will not have a negative effect on the economy.

As forecast previously, average salary growth is expected at 8.5% in 2024 and 7% in 2025.

SEB projects household consumption to grow by 2.8% in 2024 and 3.2% in 2025.

Povilauskas expects the European Central Bank (ECB) to reduce interest rates to 3% in 2024 and 2% in 2025.