Republic of Lithuania: 2019 Article IV Consultation-Press Release; Staff Report
IMF Staff Country Reports, July 31, 2019
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- Republic of Lithuania: 2019 Article IV Consultation-Press Release; Staff Report
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Bibliographic details
- Published: July 31, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513509235.002
Macroeconomic and fiscal performance
- The Lithuanian economy has continued to enjoy a strong macroeconomic and fiscal performance.
- The continued strong economic performance suggests that a neutral fiscal stance would have been preferable in the year 2019.
- Macroeconomic and financial stability has been achieved through prudent policies and labor market flexibility and is a prerequisite for sustained growth.
Structural challenges and productivity
- Long-term challenges remain largely unaddressed.
- Lithuania needs sustained productivity gains to ensure higher living standards and convergence with Western Europe.
- Significant and well-identified structural challenges have yet to be addressed with ambitiously designed and decisively implemented productivity-enhancing reforms.
- The current expansionary cyclical environment and strong fiscal and external positions provide an ideal opportunity to address these challenges.
Financial sector and fintech
- Fintech provides big opportunities to improve financial services and produce high-skill jobs.
- Fintech also brings challenges, particularly related to antimoney laundering.
- The authorities’ efforts to promote fintech are already delivering results.
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- 1ltuea2019002