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IMF: Lithuania Now a Developed Country

The International Monetary Fund has updated the status of Lithuania to an advanced economy.

Up until Tuesday, the Baltic country had been in the group of emerging economies. The IMF has three classes of economy, the third being developing.

Reacting to the news, Chairman of the Central Bank of Lithuania, Vitas Vasilauskas, said that the news was recognition of the sustainable economic development and the financial discipline implemented by authorities in the country.

GDP per capita is $15,500 according to World Bank figures for 2013. This places Lithuania above its EU neighbours, Latvia and Poland who stand at $15,300 and $13,400 respectively.

The IMF expects the economy to grow in excess of 3% in 2015 and 2016.

Lithuania, like all of the Baltic countries, had a disastrous recession where nearly 15% was knocked off its GDP in 2009. Similarly to the rest of the Baltics who suffered then, it has now recovered. However, many individuals are still suffering from the finance led housing bubble created during the boom years.

Many were surprised by Lithuania’s decision to adopt the euro at the beginning of 2015. It has generally been received positively within the country despite the current crisis throughout much of the eurozone.

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