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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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