Swedbank keeps Lithuania growth forecast at 3% this yearLithuania’s economy is expected to grow 3% this year, one of the fastest rates in the European Union, before slowing to 2.3% in 2027 as consumer spending loses momentum, Swedbank said Tuesday.
The bank left its economic growth forecasts for this year and next unchanged.
“Lithuanians have already spent more than 1 billion euros withdrawn from second-pillar pension funds,” economist Nerijus Mačiulis said in a statement. “Most of the savings were spent on durable goods: cars, construction materials, furniture and electronics. However, spending on nonessential goods and services – travel, leisure and hotels – has increased sharply in recent months.”
As a result, retail sales growth in the second quarter was the fastest in the EU, Mačiulis said, adding that the surge was a one-off boost that would be difficult to repeat in the near term.
Consumer spending is not the only factor supporting Lithuania’s economy, he said. Industrial production growth was also the fastest in the EU, while growth in services exports remained strong.
