Outlook for 2012-16.

The article presents political and economic policy outlook of Lithuania from 2012-2016. It is expected that party politics will remain volatile and the government will continue to pursue foreign policy based on its membership of the North Atlantic Treaty Organization (NATO). Budget deficit is expected to exceed 3% of the gross domestic product (GDP) Maastricht limit in 2012, and inflation will average at 3% during the forecast period.