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bruary of 2006 Women's Adam Shaheen Jersey - gsnoopy520 - 11-06-2018

VILNIUS, Aug. 26 (Xinhua) -- In the second quarter of this year, the average gross monthly pay in Lithuania grew by 8.1 percent compared to the same period last year, data announced by Statistics Lithuania showed on Friday.

In the second quarter, the average gross monthly wage reached 771.90 euros (about 865 U.S. dollars). In the first quarter, wage growth was 6.9 percent, compared to the same period last year.

Wage growth was driven by pay increases in the private sector. According to Statistics Lithuania, wages amongst those working for private companies increased by 9.4 percent, while growth in the public sector was 5.9 percent.

"During the mentioned period, the wage growth was mostly influenced by larger labor volumes, a higher number of working hours, the minimum pay which was increased to 350 euros as of January 2016 and other causes," Statistics Lithuania explained in its announcement.

Real wage growth adjusted for inflation was 7.7 percent compared to the period a year ago.

"This year, real wage adjusted for price changes in the country has surpassed the level seen before the crisis and currently is the highest in the country's history," Tadas Povilauskas, chief economist at SEB bank in Lithuania, said in a note.

Recently, the pace of wage growth in the Lithuanian economy has become a concern for economists, highlighting threats to the country's productivity and competitiveness.

Tomas Siaudvytis, senior economist at the Bank of Lithuania, notes that during the last three years wage growth in Lithuania averaged almost 5.0 percent annually, while productivity growth averaged to around 1.2 percent per year.

The situation is a cause for a concern, according to Siaudvytis. He says businesses can only increase wages for a limited time without increasing the prices of its products and services.

"Later, one might need to increase the prices of products and services. Actually, we have been witnessing faster price growth in services in Lithuania recently. In July, it amounted to 3.4 percent," Siaudvytis wrote in his commentary.

Economists note that one of the main reasons for the rapid wage growth is the lack of a labor force, caused by emigration and an ageing population.

In the second quarter, Lithuanian gross domestic product (GDP) grew by 2 percent compared to the same quarter of last year.

Lithuania's central bank expects the country's economy to grow by 2.6 percent this year. In 2015, Lithuania's GDP grew by 1.6 percent. Enditem
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