The IMF mission has commended the Lithuanian government’s response to economic challenges, noting that inflation, which is among the highest in the EU, should abate until the end of the year.
Lithuania is well prepared to meet economic challenges brought by the pandemic and the war in Ukraine, as the country’s government has chosen the right measures to address the difficulties, the head of the International Monetary Fund’s mission to Lithuania has said.
“Lithuania had a very good response to the situation triggered by the pandemic, whereas the inflation driven by the war in Ukraine is likely to stabilise and begin to moderate in the second half of the year,” Borja Gracia said during a news conference at the government on June 7, as the Fund’s team concluded its two-week mission in Lithuania.
“In the IMF’s opinion, the measures chosen by the government to address these challenges have been right,” he added.
According to Gracia, both private and public sectors in Lithuania are ready to meet inflation challenges.
Finance Minister Gintare Skaiste said that the government was currently not considering any additional measures to tame inflation, but could bring them forward in autumn if necessary.
“According to current estimates, inflation will stabilise and begin to moderate in autumn. If we see a different situation, some additional measures could be brought forward in autumn. However, it is now a little too early to say what the economy will look like then,” she added.
The Fund’s mission started work in Lithuania on May 26. Its experts looked into the general macroeconomic situation in Lithuania, its labour market, the situation in the financial sector, fiscal policy, the situation in the energy sector and climate change policy. (LRT/Business World Magazine)
