Lithuania has never before had so much debt. In a few years’ time, several billion more will lie on the shoulders of the state.
During the last pandemic year, according to preliminary data, public debt increased by 5.5 billion to more than 23 billion euros. And in the next few years, it is expected to grow at a similar rate, reaching over 29 billion euros in 2023. This makes us stand out in terms of the countries in our region and this alarming.
The national debt of Lithuania is the debt accumulated by all levels of government in the country. However, not all public sector debt is counted as part of the national debt. Only debts created by the government through formal debt agreements are included in Lithuania’s national debt figure.
The rise in national debt peaked in 2015 at 42.6% of GDP. Since 2015, the government has been able to bring down the national debt. Budget Deficits The Lithuanian government ran very large budget deficits for several years to boost GDP growth. The debt in 2020 reached 47.3% of Lithuania GDP, a 11.4 percentage point rise from 2019, when it was 35.9% of GDP.
According to the last data point published, Lithuania per capita debt in 2020 was 7,849 euros per inhabitant. In 2019 it was 5,845 euros, in 2010 – 3,670 euros.