Country snapshots 2017-18: Lithuania

Pension reforms needed

Economic growth is projected to rise to 2.8% by 2018, as investment benefits from low real interest rates and a gradual recovery in export markets. Consumption growth will hold up following a series of increases in the minimum wage. Inflationary pressures will mount as wages rise in response to a further decline in the unemployment rate.

The rapidly ageing population calls for prioritising reforms to the pension system and measures that promote labour force participation. In particular, the retirement age should be linked to life expectancy and primary health care should be bolstered. Such measures should particularly focus on low-income workers, given the existing high levels of inequality and poverty.

GDP growth

2013

Current prices EUR billion

2016

2017

% real change

2018

35.0

2.1

2.7

2.8

Visit www.oecd.org/eco/economicoutlook.htm

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