S&P Global Ratings assessed the prospects of the Lithuanian economy
The international credit rating agency S&P Global Ratings published a report on Lithuania, in which it assessed the prospects of the country's economy. It is noted that the Lithuanian industry is more resilient than its Baltic neighbours, the implemented fiscal policy, stable and low level of the state debt are positively evaluated.
Analysts of the agency Standard & Poor's assess Lithuania's situation as stable, therefore a decision was made not to change the ‘A’ long-term credit rating assigned to the country in May (stable outlook) and to publish only the country's report.
According to the agency's assessment, the Lithuanian economy will remain resilient, despite the continuing impact of geopolitical uncertainty. The country's economy is expected to grow by 2.3 % this year and accelerate to 2.9 % next year due to strengthening domestic and foreign demand. Analysts predict that in 2024-2027 Lithuania's budget deficit will reach an average of 2 % of GDP, while the state debt will remain at a stable low level. Average inflation, according to Standard & Poor's, decreased to 1 % this year and will reach around 2.5 % in the next three years.
Standard & Poor's is of the opinion that russia's war in Ukraine and geopolitical risks in the region will continue to affect Lithuania's public finances, economic growth and competitiveness in the medium term.
Lithuania has been assigned a stable outlook to reflect the agency's experts' expectations that the war in Ukraine will not spread to the territory of NATO members, including Lithuania. Experts believe that the risks due to regional geopolitical changes will be offset by the accelerating economic recovery due to stronger domestic and foreign demand, and the maintenance of a prudent fiscal policy.
The last time S&P Global Ratings reviewed Lithuania's rating was in May this year, setting ‘A’ (stable outlook) and leaving the ‘A-1’ short-term credit rating in effect.
In October, Lithuania's rating, ‘A (high)’ with a stable outlook, was affirmed for our country by the DBRS Morningstar credit rating agency, and Moody's Investment Service performed a periodic review of Lithuania's credit rating. The analysts of this agency assessed the situation in Lithuania as stable, therefore a decision was made not to change the long-term credit rating of ‘A2’ (stable outlook) assigned to the country previously and only to publish a report on Lithuania, assessing the prospects of the country's economy.
Meanwhile, Fitch Ratings reaffirmed the ‘A’ long-term credit rating previously assigned to Lithuania in November, leaving a stable outlook.
More information on Lithuania’s credit ratings is available here.
Additional information:
A credit rating is an indicator that provides investors/creditors with consolidated information on the level of the borrower’s ability to meet its financial obligations. A high credit rating indicates a lower risk of default of the borrower/issuer and, accordingly, lower borrowing costs.
S&P Global Ratings is part of a group of influential credit rating agencies such as Fitch Ratings and Moody’s Investors Service. For credit ratings they use particular grades and symbols and set a credit value to borrowing countries and companies by using standardized credit ratings.
Last updated: 05-12-2024
Related news:
The formation of the political team of the Ministry of Finance has been completed
Defence bonds were distributed for EUR 31.3 million across recent issues
New Minister of Finance Taurimas Valys takes office
ECOFIN and Eurogroup meetings in Brussels will focus on strengthening European capital markets
Farmers actively use ILTE’s funding– more than 170 applications have been approved within two months