January 25, 2008
– VILNIUS (Thomson Financial) – Lithuania’s gross domestic product surged by 10 pct in 2007 compared with the previous year, according to preliminary figures released by the economy ministry.
Like neighbouring Latvia and Estonia, Lithuania has one of the fastest-growing economies in the European Union, which all three Baltic countries joined in 2004, 13 years after winning back their independence from the crumbling Soviet Union.
Lithuanian GDP grew by 7.5 pct in 2006 compared to 2005.
This year, it set to surge by 8.1 pct, outstripping the previous forecast of 7.4 pct, the country’s central bank said in separate figures issued on Friday.
In 2009, however, growth is set to slow to 5.7 pct, the bank said.
The bank also said that annual average inflation this year will be 2.2 pct higher than predicted, hitting 7.9 pct compared with 2007.
The rapid growth of inflation in 2008 will mainly be related to rises in food prices, the bank said.
Annual average inflation in 2007 was 5.7 pct compared with the previous year, and 3.8 pct in 2006.
In 2009, the rate should dip to 4.9 pct, the bank said.