Sharper contraction for Lithuania

VILNIUS-The first quarter of 2009 has shown sharper economic contraction thanexperts had previously thought.

According to new data from the Lithuania Statistics Office, the economy contracted by 13.6 percentof GDP in the first quarter of this year as compared to the same period in 2008,a downward revision from the previous estimate of 12.6 percent.

Overall contraction for 2009 is estimated at 11 percent.

However, Lithuania'seconomy minster Dainius Kreivys is optimistic.

"Recovery is not far away," Kreivys told the EUobserver.

"We already have some stabilization signs, including the sector ofexports," he said.

On another positive note, Kreivys also said that because of the nations lowlevel of debt (15.6 percent as a percentage of GDP), the government had moreroom to work with.

Already this year, the Lithuanian government had started implementing its stimulusplan equal to about 5 percent of GDP, much higher than most European states.