Economy of Lithuania

n342/lietuva2.jpgIn seeking its primary objective, i.e. to maintain price stability, the Bank of Lithuania monitors and analyses the economy of Lithuania and projects potential prospects of economic activity.

The Bank of Lithuania carries out continuous analysis of the tendencies in the economies of Lithuania and foreign states and informs about them the public in periodic publications and press releases. The Bank of Lithuania projects potential outlook of economic development by producing macroeconomic projections. These projections help to provide systematic assessment of the development of key macroeconomic indices over both short term and medium term and foresee potential risk emerging to their development. The macroeconomic projections of the Bank of Lithuania are produced by applying structural macroeconomic model which is constructed, supervised and updated by the Department of Economics of the Bank of Lithuania.

An integral part of the economic monitoring is the economic research activity. The research work carried out by the Department of Economics enables the Bank of Lithuania to assess the influence of the monetary policy to the economy and to project the impact of changing economic environment on the economic development. The primary aims of economic researches carried out by the Bank of Lithuania are to ensure the validity of the decisions of the Board of the Bank concerning currency and exchange rate policy and the stability of the financial system, competent participation of the Bank in the European System of Central Banks, cooperation with international institutions and forums as well as to raise and strengthen human capital of the Bank of Lithuania.