Lithuanian cbank cuts 2021 growth forecast due to pandemic impact

Lithuania's central bank said on Tuesday it now expected the economy to grow 1.9% in 2021, a downward revision from the 3.1% increase seen in September, with the second wave of the pandemic holding back activity.

The central bank forecast a drop of 1.8% in gross domestic product this year, which would be one of the smallest declines in the European Union, if it proves correct.

However, state finances will record a deficit of 8.8% of GDP in 2020, largely due to spending to support the economy, Central Bank Governor Vitas Vasiliauskas told a news conference.