VILNIUS, Nov. 17 (Xinhua) -- The European Commission on Monday lowered Lithuania's gross domestic product (GDP) growth forecast for next year to 3 percent, slightly down from the 3.1 percent projected in May.
The Commission also revised Lithuania's growth estimate for this year to 2.4 percent, marking a 0.4-percentage-point downgrade from its previous outlook.
"The autumn forecast shows that Lithuania's economic engine remains resilient despite a challenging geopolitical environment," said Marius Vascega, head of the European Commission Representation in Lithuania.
He noted that household spending is expected to drive economic expansion in 2026, supported by rising wages and withdrawals from the second-pillar pension system.
Inflation is now forecast to reach 3.4 percent this year before easing to 2.8 percent in 2026, higher than the spring estimates of 2.6 percent and 1.2 percent, respectively.
The Commission expects the unemployment rate to stand at 7.1 percent this year and decline to 6.8 percent next year, compared with previous forecasts of 6.8 percent and 6.6 percent.
Lithuania's general government deficit is projected at 2.2 percent of GDP this year and 2.5 percent next year. Public debt is expected to rise from 39.8 percent of GDP this year to 44.7 percent in 2026.
