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

The Lithuanian economy experienced only a short-lived and contained recession in the second quarter of 2020, with GDP declining by 4.2% year on year. Within the European Union, only Ireland was hit less hard. A better-than-expected export performance and swiftly rebounding household consumption in the months thereafter is likely to result in a decline in the Lithuanian economy of only 2% over 2020. The government undertook substantial fiscal stimulus measures, and the public investments announced will support recovery over the next two years. For 2021, we expect real GDP to grow by 4.5%, followed by a somewhat slower upswing of 3.2% in 2022.