The International Monetary Fund (IMF) mission, which published the preliminary conclusions of its 2026 consultations with Lithuania, notes that the Lithuanian economy remains resilient amid global shocks. However, sustaining long-term growth will require structural reforms, investments in productivity, and a more sustainable fiscal policy.
Representatives of the Lithuanian Trade Union Confederation (LPSK) – Acting President Dalia Jakutavičė and International Relations Secretary Jonas Januškevičius – also participated in discussions emphasizing the importance of workers’ rights, social dialogue, and social justice in economic decision-making.
According to the IMF, Lithuania’s economy grew by 2.9% in 2025, with similar growth expected in 2026. This has been driven by rising domestic consumption, public spending, investment, and wage growth. At the same time, the IMF warns that inflation could rise to 5.2% this year, particularly due to increasing energy prices and strong domestic demand.
The report devotes significant attention to labour market challenges. The IMF notes that Lithuania continues to face labour shortages and persistently high unemployment in some regions, while one of the key issues remains the mismatch between workers’ skills and labour market needs. The organization calls for strengthening education and training systems, expanding reskilling programmes, active labour market policies, and vocational training. It also stresses that these measures require stable financing.
The IMF also proposes reviewing the social benefits system in order to preserve incentives to work while ensuring adequate social protection and better targeting of support. The report further highlights the need to improve the unemployment benefits system in order to reduce repeated returns to unemployment.
Migration policy and labour mobility also occupy an important place in the report. The IMF states that faster processing of work permits for foreign workers and stronger migrant integration could help reduce labour shortages in the most affected sectors. The importance of better regional connectivity and a greater supply of affordable housing in major cities is also emphasized, as these measures would help increase employment and productivity across the country.
The IMF further underlines that public finances will increasingly come under pressure in the future due to defence spending, population ageing, and growing social protection needs. It therefore recommends seeking sustainable sources of revenue by reviewing property taxation, increasing the progressivity of the tax system, and reducing tax exemptions.
An important section of the report is dedicated to the pension system. The IMF critically assesses decisions that weakened the second-pillar pension system, warning that this could increase long-term fiscal pressures and reduce the adequacy of future pensions. The organization calls for ensuring the stability and predictability of the system while strengthening incentives to participate in pension savings schemes.
The IMF’s remarks on productivity and technological progress are also particularly relevant for trade unions. The report encourages accelerating digitalisation and the implementation of artificial intelligence solutions, while recognizing that this requires investments in workers’ skills and effective reskilling systems.
During the meetings, LPSK representatives stressed that economic growth must not be based solely on productivity indicators or fiscal discipline, but also on the creation of quality jobs, workers’ social security, and strong social dialogue. Trade unions also highlighted the need to ensure that the costs of the green and digital transitions are not shifted solely onto workers.
The IMF mission’s conclusions will serve as the basis for the final report, which will later be discussed by the IMF Executive Board.