Recently, Lithuania's Central Bank increased inflation forecasts for 2008. They feel that inflation will rise here to 7.9 per cent, significantly higher than what they forecasted for the year in October.
The significant difference stems from the underestimated costs of current increases in food prices and in energy costs, which are causing turmoil in many European countries.
Lithuania's central bank also believes that economic growth will rise to 8.1 per cent, which is up from the 7.4 per cent it originally predicted in October.
Lithuania is not a country many hear about in terms of property investment but with less focus on the standard hotspots in Europe, property investors are looking for the next emerging market.
As for the property market here, Lithuania is likely to see more interest from outside investors. In many areas of Eastern Europe, property values are very low, allowing for far more investors to get in over other locations with skyrocketing prices. The property market in Lithuania is still new, allowing investors to get a foothold now may mean property values rising in the near future.
The economy in Lithuania is growing here and the property market is newly emerging. These elements, including a stable government structure encouraging development, make it an ideal investment area.
