Lithuanian economy is well prepared for euro adoption, the International Monetary Fund (IMF) Executive Board said in its statement released on Thursday.

"The pursuit of prudent policies has led to robust balanced growth, falling inflation, and strengthened public finances, thereby placing Lithuania on track for euro adoption in January 2015," the IMF's Board of Directors was quoted in the report.

The introduction of euro will strengthen Lithuania's financial stability, reduce risk and foster further European integration, the Fund believes.

Lithuania comfortably meets all official euro criteria in the meantime. The EU will take a final decision about the country's membership in the euro zone in July.

Healthy and balanced growth can be observed in Lithuanian economy but the Baltic country still lags behind its Western European associates in terms of income per capita, the IMF noted.

According to the report, Lithuania's real GDP should surpass the peak pre-crisis level of 2008 for the first time this year. The Fund expects the country's economy to grow at 3.3 percent in 2014.

Implementation of further structural reforms leading to improved competitiveness and tackling the country's uncomfortably high structural unemployment are among other recommendations to Lithuania by the IMF.

In its separate assessment of all three Baltic countries announced also on Thursday, the IMF praised the region's strong economic recovery from the 2008-2009 global financial crises, but also warned of anemic credit market which could harm investment and growth. Endi

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