Economist: likelihood is increasing that Lithuania’s economy will face wider challenges

Chief Economist at Swedbank Nerijus Mačiulis says it is possible that Lithuania’s economy may face greater challenges than just a technical recession. If unemployment rises and real estate prices drop, it will be an indication of more serious problems, he says.

“There may be a crisis but we should remember what the definition of a crisis is. It is an unexpected situation that is hard to manage, a situation with a no easy way out. There was the [COVID-19] pandemic, a global financial crisis, which were hard to predict. What we see so far is Lithuania’s economy cooling down. Some sectors are experiencing more serious challenges, but this is not a widespread phenomenon that should be worrying for many,” Mačiulis told the radio station Žinių radijas.