Global financial crisis and Lithuania

Abstract

The article deals with the main reasons of finance and economic crises as well as its consequences. The links between real estate markets and markets of securities, credit expansion and growing of investment in USA are described. It is shown that the processes in real estate and securities markets inflated the prices of real estate and created so-called real-estate bubble the burst of which was a main reason of global financial crisis. The main anti-crisis measures in the EU and USA are presented. The situation of Lithuania in the context of the global crisis is discussed. The economic situation of Lithuania before and in the period of crisis using statistic date is analyzed. The main factors influenced to economy situation of country and means of government economy policy is discussed. On a base of analysis made conclusion that the economic revival of the country will depend both on the foreign market restoration and on the fact how the government will succeed to stabilize the state finances and to expand the domestic market.