Lithuania may face economic stagnation, which would be a major blow to the fast-growing economy, President Gitanas Nauseda has warned.
“We could face economic stagnation, if not a recession,” he said, adding that this “would deal a significant blow to Lithuania, which is used to a fairly fast economic growth”.
The economic situation is changing rapidly and it will depend on how the war in Ukraine unfolds, among other factors, according to Nauseda.
The current economic situation is serious and requires swift action, he added.
“This is a very serious situation and I’d say that we are facing what is called stagflation, when economic growth is decelerating rapidly and inflation is rising sharply at the same time,” the president said.
He added that the authorities should start thinking right now about “what measures we are going to offer to mitigate the effects of inflation for people”.
The government has said it will come up with a revised draft budget and anti-inflationary measures as of Easter at the latest. (LRT/Business World Magazine)
