During an economic review on Wednesday, LB Board Chairman Gediminas Šimkus clarified the rationale behind the current GDP forecasts. He stated that the adjustment to the year’s forecast was not based on any deterioration of underlying fundamental trends. Instead, the revision reflected the weaker performance observed during the first quarter, during which the economy contracted by 0.3%.
Šimkus noted that the methodology for evaluating the outlook across the coming quarters mirrors previous assessment periods. He expressed confidence that, barring unforeseen events, the economic trajectory is expected to sustain a period of relatively rapid growth. Regarding specific projections, LB previously predicted that the GDP growth rate for the current year would reach 3.1%, with an anticipated rate of 2% for the following year.
On the subject of inflation, the board maintained its forecast for the average annual rate this year, while predicting a figure of 3% for the current year and 5.1% for the next. However, Šimkus cautioned that while the average annual forecast remains unchanged, individual months within the current year could see higher inflation readings. The board continues to monitor various indicators to provide a comprehensive view of the financial landscape.
Topics: #year #economic #growth
The board needs to clarify exactly which sector’s weakness necessitated this forecast revision.