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The Economistannounced, that Lituania is the leader of decade GDP growth out of all new member states that joined EU on its largest expansion in 2004. They have indicated four  clear winners in the prosperity league. Two Baltic countries, Lithuania and Latvia, together with Poland and Slovakia, have made gains of over 40% in GDP per person. The advances in the Baltic economies (including Estonia’s 30% gain) are particularly notable since all three experienced savage downturns in 2009, after the financial crisis.

However, there is also one clear loser. Cyprus have become less well-off, suffering a 13% decline in living standards since 2004. Slovenia, which also experienced a big banking crisis (though not on the scale of Cyprus's) has also done badly, with GDP per person rising by only 7%.

Looking forward into the future The Economist argues that despite the crisis in Ukraine, the European recovery still looks intact. Across the 28-strong European Union, GDP will expand by 1.5% this year and by 2.0% in 2015, according to new forecasts from the European Commission on February 25th. Across the 18-strong euro zone GDP will rise by 1.2% in 2014 and by 1.8% in 2015.

They also point towards the Baltic states as they will continue to race ahead. Latvia will grow by over 4% a year in both 2014 and 2015. Lithuania, which is expected to join the euro area next year, will grow by 3.5% in 2014 and 3.9% in 2015.

Source: The Economist

Article tutors Enterprise Lithuania