Lithuania Economy Back on Track

The Lithuanian economy seems to be back on track, but without implementing major structural reforms, the country’s progress might not be sufficient, European Commission Vice President Valdis Dombrovskis has said.

Dombrovskis, the commission’s vice-president for the euro and social dialogue, shared his views at a conference to encourage investment, sustainable growth and social welfare in Lithuania, EU Bulletin reported.

“Structural reform is not a one-size-fits-all formula; it demands a tailored approach to each EU member state and requires continuous attention,” he said. “This is never easy, but it is worth an effort,” he added.

Dombrovskis noted that Lithuania’s gross domestic product growth had been around 2% for the past two years and was expected to increase to 2.9% in 2017 and 2.8% in 2018.

According to Dombrovskis, private consumption had been strong, but a decline in investments, due to a temporary slowdown of European Union funds absorption, had weighed on overall growth. High productivity growth in Lithuania had not been sustained, he added.

Income in Lithuania was one of the highest in the EU and needed special attention, Dombrovskis noted.

Lithuanian Prime Minister Saulius Skvernelis promised to take into account the European Commission’s insights concerning the structural reforms and ensure consolidation of political will in order to implement the changes. “Our goal is to become the most competitive country in the region,” said Skvernelis.

He said his cabinet was ready for consultations with the business world and social partners, as well as to take into account recommendations by international organizations in order to accelerate Lithuania’s progress.