Vilnius - Lithuania looks set join Baltic neighbours Estonia and Latvia in recession soon, after figures released by the Lithuanian statistics office Tuesday said GDP fell by 1.5 per cent in the last quarter of 2008 compared to growth of 2.9 per cent in the third quarter.

Estimated average growth for the whole of 2008 was 3.2 per cent.

"Today's GDP figures confirmed our expectation that the economic development in Lithuania is lagging behind the other two Baltic countries, which are already in recession," commented Danske Bank analyst Violeta Klyviene.

Riga- The medium-term prospects for the economies of Latvia, Lithuania and Estonia are the worst in the European Union, according to a European Commission report released Monday.

Formerly known as the "Baltic Tigers" for their dynamic rates of GDP growth and ability to attract investment, all three countries are now little more than mewling pussycats if the downbeat EC economic survey is to be believed.

Latvia looks in the worst shape of the 27 EU member states with GDP set to contract 6.9 per cent in 2009 and a further 2.4 per cent in 2010.

Vilnius - There was nowhere to hide for anyone owing money in Lithuania Monday after one of the Baltic country's main debt collection agencies said it was using a renowned clairvoyant to track down debtors and identify secret business crooks.

Vilija Lobaciuviene is well known in Lithuania for her supernatural powers. The self-styled witch employs techniques including spells, herbal medicine and the reading of auras in her work, which has helped make her a television favourite.

Now the otherworldly psychic has signed a down-to-earth cooperation agreement with debt collection agency Skolu Isieskojimo Biuras (SIB), whose corporate website says: "There are are cases when unconventional means and methods must be applied."

Vilnius - Lithuania's national carrier, FlyLAL-Lithuanian Airlines, had its operating certificate revoked Friday over fears that its financial troubles could affect flight safety.

As a result of the move, which was announced by the Lithuanian Civil Aviation Administration (LCAA), all FlyLAL-Lithuanian Airlines flights will be grounded indefinitely from Saturday.

"The certificate has been suspended due to the poor financial condition of FlyLAL," said Kestutis Auryla of the LCAA.

Vilnius - The authorities in the Lithuanian capital, Vilnius, were in watchful mood Friday as crowds gathered outside the national parliament building and government offices to demonstrate against tax increases, job losses and public spending cuts.

The demonstration, organized by trade unions, was expected to draw several thousand participants from across the Baltic country.

Vilnius - Lithuania's President Valdas Adamkus took part in a teleconference Thursday morning with his Ukrainian and Polish counterparts, Viktor Yushchenko and Lech Kaczynski, to discuss the ongoing gas supply dispute between Russia and Ukraine, according to official sources.

"The leaders of Ukraine and Poland requested the Lithuanian president to actively support Ukraine's position in the conflict and to explain its standpoint to EU leaders," a statement from the presidential press service said.