Feb 25 • 15:57 UTC 🇱🇹 Lithuania Lrytas

Lithuania will face both trials and opportunities: 2.5 times faster growth is forecast for Lithuania than for the EU

A study forecasts that Lithuania's economy will grow significantly faster than the EU's, despite ongoing global uncertainties.

A recent study indicates that even amidst high geopolitical and financial uncertainty, the global economy is expected to maintain steady growth into 2026, with projections showing a 2.6% growth rate for global GDP, down from 2.8% in 2025. The slowdown is primarily attributed to a deceleration in China's economic growth. Developed economies are expected to see an average growth of 1.7%, with the Eurozone lagging at just 1.2%. However, it suggests that Lithuania may experience growth at a rate of 2.5 times that of the EU, presenting substantial opportunities for the country in the coming years.

Despite challenges such as U.S. tariff policies and increased trade tensions, global trade volume still managed to rise by 3.9% in 2025, surpassing expectations. This uptick was partly due to lower-than-forecasted U.S. tariff rates and companies seeking to redirect supply chains to third countries. However, the report raises concerns about corporate solvency, noting an approximate 5% rise in bankruptcies in developed economies during 2025, with the U.S. experiencing a staggering 15% increase in the latter half of the year. This situation indicates potential risks for businesses operating within these uncertain conditions.

In conclusion, while Lithuania appears poised for substantial growth in comparison to the European Union, the overall economic landscape is fraught with challenges that need to be navigated. The growth prospects for Lithuania and the expected performance relative to the EU suggest that while opportunities are present, companies must remain vigilant in terms of solvency and profitability, particularly against a background of weakening productivity and rising wages. The implications for Lithuania's economy are significant, potentially positioning it as a more attractive venue for investment and economic activity.

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