Lithuania forecasts sharp return to growth in 2010
(VILNIUS) - Lithuania forecast on Monday a sharp return to growth in 2010 fuelled by rising exports and European Union funds after its economy shrank dramatically last year.
"It is estimated that the Gross Domestic Product (GDP) will grow by 1.6 percent in 2010," the finance ministry said in a statement.
The European Union member's economy contracted by 15 percent in 2009 and previous government estimates had forecast a 4.3 percent contraction for this year.
The ministry said this year's growth would gain a boost from a rise in exports and the anticipated absorption of EU structural funding.
GDP could grow by as much as 3.2 percent in 2011, the ministry said.
"If the tendency continues, we will be able to hope next year to see export growth almost in the double digits," Finance Minister Ingrida Simonyte was quoted as saying by the Baltic News Service.
Lithuania, a 2004 EU entrant of 3.3 million people, recorded growth of 3.2 percent in 2008 before the global financial crisis pummeled its economy.
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