According to Rokas Grajauskas, Danske Bank’s Baltic analyst, the Baltic countries are still feeling the influence of the Russian embargo and the overall economic slowdown in Russia. This year, Lithuania’s economy grew the slowest because, among all of the Baltic countries, it was the most economically dependent on Russia. The situation should improve next year, however.
Grajauskas said that “In 2016, domestic demand and consumption will continue to be dynamic and fast because wages will grow even faster than they did this year. In terms of exports, we are seeing a greater reorientation from Russia to the Eurozone and Scandinavian markets. This is a good direction because next year, there will be no economic growth in Russia again. Our total exports are expected to grow by 3-4 percent due to an increase in exports to these markets. As a result of export reorientation and dynamic domestic demand, our GDP should grow by almost 3 percent. Our current forecast is 2.8 percent.”