The annual IMF Concluding Statement for Lithuania points out that Lithuania's economic comeback over the last five years has been impressive, turning the page with its entry into the euro area this January. Growth has been among the strongest in the EU, real GDP now exceeds previous peak levels, and per-capita income reached 73 per cent of the EU average (in purchasing-power-parity terms). According to the experts, in the longer run, Lithuania's economy will continue to grow, picking up to 3.2 per cent next year.
According to the Prime Minister, the current data confirm Government's successful efforts in coping with the challenges through the diversification of export markets and thus mitigation of the impact of Russia's embargo. "A recent study by logistics companies revealed that irrespective of the loss of exports last year which was successfully absorbed, businesses succeeded to earn an additional 18 million euros", underlined Prime Minister Algirdas Butkevičius.
Mission representatives welcomed the plans to boost investment in the nearer term and support SMEs, to promote education system aimed at better equipping Lithuania's labour force with the skill mix needed by labour markets, and to accelerate the modernization of labour relations.
The Statement suggests that the current Labour Code is overly rigid and poorly applied, which ultimately brings detriment to workers and employers alike. The IMF Mission pointed out that the new social model currently under the development is an opportunity to modernize labour relations.
"More balanced arrangements for working time, form of contracts, notification periods, severance pay, and dispute resolution would be better enforceable, would put labour relations on a sound and predictable footing, and would appeal to investors, especially from abroad", said the Head of the IMF Mission.
Lithuania became a member of the IMF in 1992. Bilateral cooperation is based on economic consultations under Article IV of the Articles of Agreement of the IMF. This Article obliges individual member country to pursue the economic and financial policy ensuring its domestic and external financial and economic stability. Therefore, the IMF conducts regular surveillance of country's policies.
