VILNIUS — In a reversal of previous prediction, the Lithuanian finance ministry announced Monday that it expects the country’s economy to grow modestly in 2010, putting the crisis behind it.
Recovery in Lithuania’s investment climate will translate into gross domestic product growth of 1.6 percent this year and 3.2 percent in 2011, the ministry predicts. Only a few months ago, ministry analysts expected a -4.3 percent contraction in 2010, with growth only coming in 2011.
“Based on a detailed analysis of export data, we see clear signs of a vigorous and rapid recovery of exports and if this trend continues we will see double-digit growth in 2010,” said Lithuania’s finance minister Ingrida Šimonytė in a statement to the press.
The ministry points to investments from European Union structural funds as the primary driver of recovery for the still troubled economy, which remains largely cut off from the Scandinavian credit that fed the “Baltic Tiger” boom.
Šimonytė said the country’s economic stabilization would make euro adoption, a long-standing goal of the government, on-track as the 3 percent of GDP deficit cap set out in the Maastricht criteria, could become achievable in 2012.
“Lithuania will continue its drive to consolidate public sector finances, thus maintaining a high level of investor confidence,” Šimonytė said.