VILNIUS, July 24 (Xinhua) -- The International Monetary Fund (IMF) forecasted that Lithuania's gross domestic product (GDP) will grow 2.4 percent in 2024 and 2.6 percent in 2025.
According to Lithuania's Finance Ministry on Wednesday, the IMF said in its latest report on Lithuania that the country's economic growth will be driven by real wage growth, public investment and low inflation.
The IMF estimated that Lithuania's average annual inflation rate will be 1.2 percent this year, half the eurozone average of 2.4 percent.
"Core inflation, however, remains elevated due to high energy pass-through, services inflation and nominal wage growth," it said in the report.
The IMF kept unchanged its Lithuanian economic forecasts released in June when the fund's mission concluded work in Vilnius.
The fund forecasted that this year's general government deficit could be lower than the 2.9 percent projected in the state budget. It suggested that any additional budget revenues, along with savings from expenditures, should primarily be used to reduce the deficit.
The IMF also noted that "Lithuania is facing large spending pressures from defense and higher borrowing costs that add to long-term pressures from aging and climate."
The IMF said the so-called solidarity levy on banks has not affected their operations and the banking system remains liquid and well capitalized. However, it believed that the levy, extended for another year in June, should not become permanent, the Baltic News Service reported on Wednesday. ■