Lithuania adjusts its GDP forecast again

The Finance Ministry revised its 2002 GDP growth forecast for the third time this year, predicting year-end growth of 5.1 percent.

In June, Lithuania's GDP growth forecast was adjusted from 4.5 percent to 4.7 percent.

But nominal GDP growth was downgraded by 1.9 percent to 4.5 percent thanks to falling prices, the ministry said.

The ministry's annual inflation level projects have been revised down to 0.8 percent from 1.2 percent. The country's statistics department expects that annual deflation may be recorded in 2002 for the first time ever.

New estimates have been taken into account in light of the country's economic growth in the first half of the year, the ministry said.

Average monthly wages are estimated to grow from 1,031 litas (300 euros) to 1.238 litas by 2005 and unemployment is expected to reach 11.5 percent.

Annual economic growth projection remains unchanged at an average of 5 percent in the long term. Real GDP is expected to grow by 4.9 percent in 2003, 5.4 percent in 2004 and 5.6 percent in 2005.