Ten years ago, Lithuania’s GDP was growing at nearly 8%, real estate prices were going through the roof and salaries were climbing at breath-taking pace. Some businesses see something similar developing at the moment, signs of a possible bust, Verlso Žinios reports.
“We had the economic crisis of 1998, then came the crisis of 2008, and there is going to be another one in 2018. I spoke about the approaching bust back in 2006, I saw similar signs then that I see now,” Dainius Dundulis, the owner of Norfa Group, tells the business daily.
Insurance companies are also seeing disconcerting signs. The globally operating credit insurer COFACE raised Lithuania’s rating this year, saying that the risk of Lithuanian companies defaulting on their financial commitments is lower than ever before.
However, COFACE Lithuania head Mantvydas Štareika warns that such stability may be a temporary thing. He says that risks undertaken by Lithuanian businesses are growing much as they did in 2006.