Lithuania's economy will shrink by 9% in 2009, according to SEB Bankas.

Gross domestic product will decline 3.5 percent in 2010, Gitanas Nauseda, an economist at the Lithuanian unit of Sweden's SEB AB, said at a conference in Vilnius.

This updated a previous forecast of a 5.5% contraction in 2009 and 3% in 2010.

The decline may push the country's budget deficit to 4.5% of GDP this year and 5% in 2010, Nauseda said.

Turning to the IMF is "unavoidable", Nauseda added.

"An opportunity to get a credit line from the IMF would improve borrowing opportunities and would boost confidence."