## Republic of Lithuania: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Lithuania

_IMF Staff Country Reports, September 1, 2021_

## Source details

**Canonical URL:** [Republic of Lithuania: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Lithuania](https://www.imf.org/en/publications/cr/issues/2021/08/30/republic-of-lithuania-2021-article-iv-consultation-press-release-staff-report-and-statement-464874)

## Other formats

- [Markdown version](/en/publications/cr/issues/2021/08/30/republic-of-lithuania-2021-article-iv-consultation-press-release-staff-report-and-statement-464874/index.md)
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## Bibliographic details
- Published: September 1, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513593197.002

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### Summary
- With a demonstrated resilience to the crisis and the recovery gaining strength, macroeconomic policies should aim at preserving stability and complementing structural reforms that address long-standing challenges.
- A medium-term plan to rebuild buffers, support potential growth, and target pockets of vulnerability would help address pre-existing disparities and poverty.
- Sustained productivity growth, supported by the implementation of politically difficult but needed structural reforms, is the only way to support high wage growth and convergence with Western Europe.
- Failure to do so could jeopardize Lithuania’s hard-earned competitiveness gains.

### Major findings and risks
- Resilience to the crisis and a strengthening recovery are evident.
- Pre-existing disparities and poverty remain concerns that require targeted actions.
- Productivity growth is central to sustaining high wage growth and convergence with Western Europe.
- Political economy constraints make needed structural reforms difficult but essential.
- Insufficient reform implementation risks reversing competitiveness gains.

### Policy recommendations
- Macroeconomic policies should preserve stability while complementing structural reforms.
- Develop and implement a medium-term plan to:
  - Rebuild fiscal and policy buffers.
  - Support potential GDP growth.
  - Target pockets of vulnerability and address pre-existing disparities and poverty.
- Prioritize sustained productivity growth through the implementation of politically difficult structural reforms to maintain wage growth and convergence with Western Europe.

### Subjects and keywords
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT); COVID-19; Crime; Financial institutions; Financial statements; Health; International organization; Loans; Monetary policy; Nonperforming loans; Public financial management (PFM)
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT); authorities' agenda; Baltics; COVID-19; Europe; Financial statements; Global; hard-earned competitiveness gain; Lithuanian authorities; Loans; Nonperforming loans; potential GDP; transparency policy; Western Europe

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## Content in this bundle

- **1ltuea2021001**
  - [1ltuea2021001 (Markdown version)](/-/media/files/publications/cr/2021/english/1ltuea2021001.pdf.md){rel="alternate" type="text/markdown"}
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_Source: https://www.imf.org/en/publications/cr/issues/2021/08/30/republic-of-lithuania-2021-article-iv-consultation-press-release-staff-report-and-statement-464874_