Lithuania forecasts 0.5 per cent growth in 2010
(VILNIUS) - Lithuania's economy will grow by 0.5 percent in 2010 and 3.4 percent in 2011 following a deep recession last year, the Baltic European Union member's central bank forecast on Thursday.
Officials statistics released in January showed Lithuania's economy shrank by 15 percent in 2009. The contraction was less severe than earlier estimates of an 18.2-percent plunge in gross domestic product.
The economy of the small EU Baltic state of 3.3 million grew by 3.2 percent in 2008 after record growth of 8.9 percent in 2007.
The Bank of Lithuania is expecting a return to growth this year.
"Lithuania's GDP is forecast to increase by 0.5 percent in 2010 and by 3.4 percent in 2011. According to the base projection scenario, real GDP will start growing faster in the second half of 2010," it said in a statement.
Average inflation in 2009 stood at 4.2 percent. The central bank forecasts 0.4 percent inflation in 2010 and 1.6percent in 2011.
The unemployment rate is expected to increase to 16.7 percent in 2010 and decline to 15.5 percent in 2011.
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