Lithuania’s economy shows resilience despite uncertainties, with rising defense spending and weak productivity growth.
Lithuania’s economy has proven resilient to multiple shocks in recent years and grew strongly in 2024. However, new challenges are emerging and long-standing issues still require attention. Defense spending is high and set to rise further, adding to other existing long-term spending pressures including from pensions. Income convergence with other euro area countries has been stalling lately while productivity growth remains weak. The global economic environment remains highly uncertain.
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