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

A better-than-expected export performance and still swiftly rising gross fixed capital investment propelled growth in the Lithuanian economy in 2019 to 3.9% in real terms year on year. A further minimum wage hike and a reduction in the effective income tax rate for low earners will maintain the country’s remarkable increase in the purchasing power of households. Thus, private consumption will continue to encourage the rapid growth of economic activity. External demand was strong in 2019, but is likely to abate in the next two years. For 2020, we expect real GDP to grow by 2.8%, followed by a small decline to 2.6% in 2021 and then 2.7% in 2022.