The Lithuanian economy held up well against COVID-19 shocks and is due for a strong recovery, International Monetary Fund (IMF) Executive Board said on Wednesday, following annual consultations with Vilnius
MOSCOW (Pakistan Point News / Sputnik - 01st September, 2021) The Lithuanian economy held up well against COVID-19 shocks and is due for a strong recovery, International Monetary Fund (IMF) Executive board said on Wednesday, following annual consultations with Vilnius.
The IMF's so-called Article IV consultations are carried out every year for the UN financial agency to collect data and evaluate the overall economic outlook of individual member states. IMF experts found that Lithuania experienced the mildest contraction in Europe during the pandemic year, managing to keep it at 0.8%, in comparison with the EU average of 6.7%.
"Directors noted that the [Lithuanian] economy is poised for a robust recovery, supported by strong fundamentals, available policy space enabled by years of prudent policies, and sizable grants from the European Union," the statement read.
In order for Lithuania to maintain this positive outlook, the IMF Executive Board urged the Baltic country "for continued vigilance, in light of the still high uncertainty, and for targeted support where it is most needed while pressing ahead with priority reforms."
Among other recommendations, IMF chiefs said that Lithuania should match the withdrawal of COVID-19 support to the pace of recovery and make sure that its recovery efforts do not jeopardize the resilience of the financial system.
