Lithuanian economy could contract up to 2.8 percent

The Lithuanian  economy   may contract between 1.3 and 2.8 percent due to the  coronavirus   outbreak, Finance Minister Vilius Šapoka said on Tuesday.

“Based on assumptions by international institutions, the base scenario derives from the assumption that the EU economy will contact by 1.1 percent in 2020, in which case, in view of our stimulus measures, Lithuania’s economy is projected to shrink 1.3 percent in 2020,” he told the parliament on Tuesday.

Read more:  Lithuania’s economy may shrink 1.2 percent due to coronavirus – central bank

A more pessimistic scenario sees the Lithuanian economy contracting by around 2.8 percent, should the coronavirus crisis carries into the second half of the year, according to Šapoka.

“Since the spread of the virus has not been contained and Europe is its epicentre, assuming that the euro area’s GDP can fall about 2.5 percent, Lithuania’s economy would shrink by about 2.8 percent,” the minister said.

If the coronavirus crisis “moves into the second half, we’ll have different figures,” he said.


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