WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The Lithuanian economy recovered strongly in Q2 2021. Better-than-expected export performance and swiftly rebounding household consumption were coupled with an upswing in capital investment and a substantial accumulation of stocks. Sharply rising infection statistics may force the government to reintroduce stricter containment measures, but we do not expect that to choke off the ongoing revival. The government is continuing to deliver substantial fiscal stimuli, and the public investments announced will support recovery over the next two years. For 2021, we expect real GDP to grow by 4.4%, followed by a strong, steady increase of 3.7% in 2022 and 3.5% in 2023.