VILNIUS — As economists worldwide debate the likelihood of a double-dip recession, Lithuania’s finance minister is optimistically predicting up to 4 percent growth for the economy in 2011.

Recent GDP figures from the first half of the year and the second quarter show that Lithuania’s economy is growing again for the first time since 2008. The Ministry of Finance has predicted growth for this year of 1.6 percent of the gross domestic product.

Finance Minister and Acting Prime Minister Ingrida Šimonytė said on radio that good export trends, which have already been seen, could lead the economy to grow by 3-4 percent in 2011.

She said that the main driver of the economy will be exports, but not domestic demand. She said that ever-falling wages would hamper the domestic economy’s turnaround.

“I think we can expect about 3-4 percent growth, starting in 2011. However, I doubt that we could see a growth of 8, 9 or 10 percent,” Šimonytė said.

She also reported that this years budget deficit will be around 8 percent of GDP, not 9.5 percent as previously reported.

Lithuania is trying to reduce its budget deficit to enter the eurozone. Šimonytė said it was not only possible to get in, by achieving a budget deficit of 3 percent or less, but it was necessary.

Lithuania has been spurred on by Estonia’s acceptance into the eurozone from Jan. 1, 2011. Being allowed into the common currency area offers the small Baltic economies stability that often frighten off investors.

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