Global Financial Crisis in Lithuania
As a result - year 2010
In the first three quarters of 2010, the general government deficit made up 6.4 % of GDP and was 2.2 %age points smaller. On an annual basis, the deficit went down because in the environment of smaller general government expenditure. In three quarters, the general government expenditure was 5.5 % smaller than a year ago. This was largely influenced by social payments that were lower by approximately one-tenth and somewhat more reduced compensation of employees related to administrative decisions taken in September 2009. In 2010, the share of the deficit of social security funds expanded compared to the total general government deficit.
Lithuania’s GDP slide down in the 2009 by nearly 15 %, however in the 2010 it grew by 1.3 and 6.2 % in the 2011. The economy is expected to rise by 3.5 % in the 2012. Lithuanian export growth is increased rapidly and prospects of the export markets growths stays positive, therefore central economic development provides for a substantially faster growth in gross domestic product. The volume of industrial production sold in foreign countries has been growing slower. Lithuania’s exports of goods and services also grew more moderately in terms of exports of the Lithuanian origin and total exports from Lithuania. This development of economic indicators is related to less favourable demand for imports in trading partners. It was encouraged by the improvement of household expectations, it has been positively affected by the labour market recovery, it is also reflected by the rising retail trade – the sales of non – durable and durable goods are increasing. The real GDP growth is mostly stimulated by private consumption expenditure.
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