Good news – Lithuania’s GDP in 2009 fell ‘only’ by 15 pct
Posted by editor on 1/29/10 • Categorized as Economy Watch, Opinion • 
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Lithuania’s Statistics Department finally released data showing Lithuania’s GDP performance in 2009. According to the report Lithuania’s GDP in 2009 contracted by 15 pct compared with 2008.
In the last quarter of 2009 on year-on-year calculation Lithuania’s GDP shrank by 13 pct. However, according to the quarterly calculation in the forth quarter Lithuania’s GDP grew by 0,1 pct.
Opinions on Lithuania’s GDP performance in 2010 are split. However, the main message coming from this Baltic country is that Lithuania’s economy is stabilising and it stopped falling.
If one puts things in prospective in the beginning of 2009 many predicted that Lithuania’s GDP will fall back to the levels of 2004, when Lithuania entered the European Union. However, statistics show that Lithuania’s GDP returned to the levels of 2007. Hence, the crises, in terms of GDP threw Lithuania back by two years. It is bad, but could have been much worse.
Furthermore, this week the European Commission has praised Lithuania’s efforts in managing the crisis and predicted that it is realistic for Lithuania to adopt Euro by 2014. That is providing that the world economy will recover.
Yes, some economists are indicating that Lithuania’s stabilisation is not sustainable, based only on recovering exports. Yes, Lithuania is loosing its most valuable people who emigrate to look for employment. Nevertheless, one should acknowledge that the Cabinet, with all its misgivings is under control of the situation and that Lithuania is heading for a recovery. Despite the fact that 2010 will be as difficult as 2009 there is hope in the country is on the right track. It might sound strange to be happy about ‘only’ 15 pct GDP fall, but this is better that 30 pct fall, isn’t?
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