IMF Staff Country Reports

Lithuania has sustained strong growth despite persistent global headwinds. Near-term activity will be supported by expansionary policies amid strong credit growth and despite the adverse energy price shock. Looking ahead, maintaining momentum will depend on shifting to durable sources of growth set in a predictable policy course— which carries an added premium amid high external uncertainty. Rising risks to fiscal sustainability, along with population aging, weak productivity growth, and persistent skills mismatches, call for reforms that lift productivity and safeguard fiscal sustainability.