Page 36 - CE Outlook Regions 2023

Imports amounted to €5.06 billion, down 3.7% m/m, but up by 42.6%
y/y. The country's foreign trade deficit stood at €850.1 million.

Foreign direct investment (FDI) increased by €163.45 million in
Lithuania in August 2022. The FDI prospects for 2023 are rather
bleaker than upbeat due to geopolitical tensions.

2.5.3 Inflation and monetary policy
The Bank of Lithuania and the finance ministry forecast that the
average annual inflation rate will be less than 10% in 2023, but some
analysts say the prognosis is too optimistic.

2.5.4 Industrial production
As of October 2022, in Lithuania, the total volume of industrial
production was €3.5 billion at current prices, up 1.1% over the last
month. It was the smallest increase in production since June as output
growth slowed sharply for electricity, gas, steam and air conditioning
supply (21% vs 40.4%). At the same time, output declined for mining &
quarrying (-0.1% vs 8.9%), manufacturing (-0.4% vs 1.5%), and water
supply, sewerage & waste management (-0.9% vs -6.1%). Considering
January 2022 to October 2022, industrial production advanced 12.5%
over a year earlier.

Experts expect Lithuania’s industrial output to fall 0.3% in 2023.

36 CE Outlook 2023 www.intellinews.com