VILNIUS, Nov. 15 (Xinhua) -- The European Commission has downgraded its forecast for Lithuania's 2023 GDP, expecting a 0.4 percent contraction, local news agency BNS reported on Friday.
According to the Commision's Autumn 2023 Economic Forecast report released earlier in Brussels, the revised annual GDP for Lithuania is much lower than the 0.5-percent growth forecast in May. The Commission attributed the contraction to high inflation affecting private consumption and weak global demand.
However, the country's GDP is expected to increase by 2.5 percent in 2024 as production costs and consumer prices fall, while investment and private consumption drive growth. In May's forecast, the next year's growth was expected to reach 2.7 percent.
The Commision said that inflation in Lithuania is expected to be 8.8 percent in 2023 before falling to below 3 percent in 2024 and 2025.
The economic slowdown will lead to a slight increase in the unemployment rate, from 6 percent in 2022 to 6.8 percent in 2023. ■
