The Lithuanian economy shrank by 12.6% in the first quarter of 2009 compared with the same period last year, the country's statistics office has said.
Falling industrial output, lower demand for exported goods and a lack of credit were blamed for the decline.
It is the country's largest contraction in gross domestic product (GDP) since it started official records in 1995.
Lithuania, which joined the EU in 2004, has forecast a contraction in GDP of 10.5% for the whole of this year.
"Our economy is falling into deep hole, and I see no positive signs in the nearest future," said Gitanas Nauseda, an analyst at SEB Bank in Vilnius.
The country's Prime Minister, Andrius Kubilius, said, "We hope that next year we shall have a much lower GDP decrease or even stability in GDP, and then we are forecasting that we should return back to GDP growth in 2011."
Baltic fears
The Lithuanian economy grew by 8.9% in 2007, which was a record increase for the country, but last year growth had slowed to 3%.
But falls in demand for construction, the retail industry and textile sectors have contributed to the turnaround, according to the Lithuanian office for statistics.
Analysts say the size of the decline suggests the economies of the other two Baltic states in the EU, Latvia and Estonia, are also poised to contract by more than 10%.
Estonia's central bank has already forecast that the economy there will shrink by 12% this year.
Meanwhile Latvia's Finance Ministry has predicted the country's GDP will contract by 15% in 2009.
Eastern Europe has been hard hit by the financial meltdown, with the IMF expected to lend billions to help bail-out its damaged economies.
Honda has reported a 77% fall in annual profits after a big decline in sales.
In the year to 31 March, Japan's second-largest carmaker made a net profit of 137bn yen ($1.4bn; £981m), down from 600bn yen a year earlier.
Sales at the firm fell 17% to 10 trillion yen, its first decline in nine years. Honda said it now expects sales to continue to decline into 2010.
Honda is now continuing with cost-cutting measures, including the temporary closure of its main UK plant.
Its factory in Swindon shut in February for four months.
Six of its US factories are also seeing temporary closures.
Honda has also cut its research and development budget, and ended its ownership of a Formula One motor sport team.
For the first three months of 2009, Honda made a net loss of 186bn yen, compared with a 25bn yen profit a year earlier.
Honda now expects US sales to fall 10% between now and 31 March next year, while it predicts European sales will decline 17%.
The firm's woes are being mirrored across the motor industry.
Barcelona and Spain midfielder Xavi has claimed that the Primera Liga is better and stronger than England's Premier League.
And the influential Xavi hopes his side can show it by going all the way in this season's Champions League.
Barca were joined in the semi-finals by three English sides last season, only to be knocked out by eventual champions Manchester United over two legs.
This time, three of the last four teams are the same.
Like United and Chelsea, Barca have progressed to the semi-final stage once again, while Arsenal are the other side still left in the competition.
The Catalans beat Arsene Wenger's side in the final in 2006 to claim their last major trophy and could set up a repeat performance this time around.
Indeed, to win the Champions league for only the third time in their history, Barcelona must overcome two English sides, starting with Chelsea.
Pep Guardiola's side meet the Londoners in the first leg tomorrow night and Xavi hopes his side can show that Spain's top flight is stronger than England's.
"There's not much between the two leagues but I think our league is stronger - it is better technically and there is more tactical order," he said on Monday.
"Maybe the Premier League wins in terms of intensity and rhythm," he added.
"And it's true that there are three English teams in the semi-finals, but we are not here by coincidence."
Xavi, who began his career at the Catalan club playing alongside Guardiola, had just returned from a bad injury the last time Barcelona won the Champions League and watched on from the bench.
And despite featuring earlier on in the tournament that year, the Spain midfielder admits he is desperate to be involved in a Barca triumph this time around.
"I felt part of that win, but as a professional you want to be out there as a protagonist.
"It's a thorn in my side and I'm desperate for us to get there again so I can be part of it," he said.
Xavi believes his team are in better shape than this time last year.
"We are pressurising up front again, we are better tactically, we play with more intensity and more rhythm - and physically we are also better," he said.
But the midfielder, who has played a record 107 European games for Barcelona, believes the series will be decided at Stamford Bridge in two weeks.
"Whatever happens, it will be decided at Stamford Bridge... it's very difficult for a tie like this to be decided in the first match," he said.
Xavi praised Chelsea pair John Terry and Michael Essien, but hopes the Londoners will miss defensive duo Ricardo Carvalho (injured) and Ashley Cole (suspended) tomorrow.
He added: "Essien is one of the best players in the world in his position - he's so good at breaking up play.
"Terry is one of the best defenders out there, he's an admirable footballer. Carvalho and Cole are notable absences, though, so let's hope they miss them."
Had Cole been available, the left-back would have lined up against right winger Lionel Messi tomorrow.
It is unclear which Chelsea defender will now have that unenviable task, but Xavi believes the Argentina forward could be the key player in this tie.
"It's fantastic to have him in our squad and he could be the key man in this series.
"If we win titles and have success collectively, it will be easier for him to win awards like the FIFA World Player or the Golden Ball - he deserves them," he said.
(CNN) -- Sri Lanka ordered an end to combat operations against Tamil Tiger rebels in the country's north, the president's office said Monday. But the rebels accused the military of continuing to bomb civilians.
Sri Lankan soldiers stand guard next to a tank captured from the Tamil Tigers.
Sri Lankan soldiers stand guard next to a tank captured from the Tamil Tigers.
"Our security forces have been instructed to end the use of heavy-caliber guns, combat aircraft and aerial weapons which could cause civilian casualties," according a statement from the Presidential Secretariat.
A rebel Web site, Tamilnet.com, immediately accused the government of violating its own order and "deceiving the international community."
"Two Sri Lanka air force fighter bombers continued to bomb civilian targets in Mu'l'li-vaaykkaal after the announcement by the Sri Lankan forces that it would not deploy heavy weapons or carry out air attacks," Tamilnet said, citing S. Puleedevan, director of the Tamil Peace Secretariat.
"Obviously we need to see what that means in practice," John Holmes, the head of U.N. humanitarian operations, said about the government announcement to end combat operations. "But, on the face of it, I think it's good news."
The military will now concentrate on "saving" and "rescuing civilians," who have been caught in the fighting between government forces and rebel fighters, the presidential statement said.
The government's decision followed an unscheduled meeting of the National Security Council called by President Mahinda Rajapaksa. The session included the commanders of the army, navy and air force.
The developments came a day after Sri Lankan officials rejected a proposed cease-fire from the Tamil rebels, warning instead that government troops would continue a new offensive until the group surrendered, a senior government official told CNN.
"The government is firm that (the rebels) lay down their arms and surrender. We do not recognize this so-called offer," said Lakshman Hulugalle, director of Sri Lanka's Media Center for National Security.
The Tiger leadership had asked the international community to "pressure the Sri Lankan government to reciprocate" on the cease-fire offer. The United States, the United Nations, the European Union and India have called for a cease-fire.
Guus Hiddink has put the nation on goal alert after predicting Chelsea and Barcelona could serve up a feast of football.
The teams meet in the first leg of their Champions League semi-final at the Nou Camp tonight.
Chelsea and Liverpool produced one of the most exhilarating matches seen in the Champions League when they drew 4-4 in the quarter-final, second leg at Stamford Bridge a fortnight ago.
Chelsea secured their semi-final spot 7-5 on aggregate after fighting back from two goals down at the interval and Hiddink hinted there could be more exciting times ahead against Barca.
"I think both teams have a style to attack when they can," declared Hiddink. "Barcelona like to attack and Chelsea are not a team who have the strategy to sit back and wait until it happens.
"The team have shown a lot of initiatives and that's why I think it is more or less an open clash, with two teams who like to go forward."
After their 4-4 draw with Liverpool, Hiddink knows his side cannot afford to start in a sluggish fashion against Barcelona.
He continued: "It is the whole squad's responsibility to make sure we have a concentrated start tonight.
"I have seen Barcelona play many times in the last weeks and also before.
"For a long time I have been a Barcelona admirer and an admirer of their philosophy.
"The players not only play for themselves but also a great club and they know it, in a side which is very attacking and attractive - it makes it typical of the Barca style."
Lionel Messi, Samuel Eto'o and Thierry Henry have scored 90 goals between them in all competitions this season.
However, Argentina international Messi is perceived as the biggest threat with 21 goals to his name so far this season.
The subject of how to stop the winger has dominated the pre-match build-up following the suspension of England left-back Ashley Cole.
It has left Chelsea without a recognised replacement following the sale of Wayne Bridge to Manchester City in January and an untimely knee ligament injury to Paulo Ferreira.
The answer for the Dutchman is to place his faith in Portugal international Jose Bosingwa, and Hiddink remains confident the full-back's vast European and international experience will be the key to success.
Normally a right-back, Bosingwa switched to the other flank in the Barclays Premier League win over West Ham on Saturday but Messi is certain to provide him with more problems than Luis Boa Morte did at Upton Park.
Hiddink added: "Messi had big promise and, within a short period, he has made it happen completely.
"I like very much the way he plays, he does like the stardom of playing and it's very effective. It looks very simple but it is very difficult.
"But I have full confidence that Bosingwa can do the job tonight."
UK Prime Minister Gordon Brown has been in Afghanistan's Helmand province visiting British troops.
The PM talked to soldiers at Camp Bastion during the first stage of a trip in which he also visits Pakistan.
After talks with Afghan President Hamid Karzai in Kabul, he announced a new strategy for dealing with terrorism across border areas with Pakistan.
Mr Brown warned of a "chain of terror" starting in the mountainous region and ending in capital cities worldwide.
He said the UK wants provinces to be handed over to government control one by one - similar to the process in Iraq.
'Crucible of terrorism'
Mr Brown said he also wanted to see the Afghan army expanded from 75,000 to 135,000-strong by the end of 2011, as well as seeing thousands more police.
In a joint press conference with President Karzai, Mr Brown said Britain could not "sit by" and do nothing.
"These border areas between Afghanistan and Pakistan are the breeding ground, the crucible of terrorism," he said.
"A chain of terror links these areas to the streets of many of the capital cities of the world.
"Our strategy for working with both the governments of Afghanistan and Pakistan in tackling this terrorist threat will be complementary.
"We will tackle it because security in these mountainous border areas, which may seem distant and remote from home, will mean more security in Britain."
Mr Brown said he and President Karzai would "jointly work" on "eradicating terrorism" in the border areas.
Announcing money to support elections in Afghanistan, Mr Brown said it was "absolutely important" that while progress had been made on Afghan elections and infrastructure it was important to "defeat international terrorism and hold it back from here in Lashkar Gar, here in Helmand province, but also on the other side of the border in Pakistan".
On his visit to Camp Bastion Mr Brown was given a briefing by Brigadier Tim Radford, commander of Task Force Helmand and took part in a meeting of local community leaders including Helmand's governor Gulab Mangal.
US Defense Secretary Robert Gates has warned Pakistan that relations with the US will be threatened unless Islamabad combats the rise of the Taleban.
espnstar.com brings you the latest team news for the Barcelona-Chelsea clash that is set to kick off tonight!
Barcelona vs Chelsea
Chelsea will look to Jose Bosingwa to cover for the suspended Ashley Cole at left-back at the Nou Camp.
Ricardo Carvalho also misses out through injury, with Alex expected to pair up with John Terry in the heart of the Blues' defence.
Barcelona have no injury worries, with Thierry Henry set to return to the starting line-up having come off the bench in Saturday's 2-2 draw at Valencia.
Andres Iniesta will return to central midfield to star alongside Xavi.
Head-to-head
La Blaugrana and the Blues are set to clash for the fifth time in the UEFA Champions League.
The Londoners beat the Catalans twice, in the 2004-05 and 2006-07 seasons. Barcelona thrashed Chelsea 5-1 after extra time in the 1999-2000 quarter-finals after losing the away match 3-1 in London.
Veteran Carles Puyol is the only remaining player from those two matches, although Barca's current coach Josep Guardiola played in the second leg.
The clubs' other showdowns were in the semi-finals of the 1965-66 Fairs Cup. Barca proceeded to the final after a 5-0 win in the decisive match on home territory. Both clubs had won their regular home ties 2-0.
In total, Barcelona have won five of the 11 matches played against Chelsea, with the Blues winning four.
La Blaugrana have won four of their six home matches against Chelsea and drawn the last two.
The leaders of Thailand and Cambodia agreed here on Friday during their bilateral meeting that the two neighboring countries will work more closely in order to prevent new border clashes, according to Panitan Wattanayakorn, Thai Prime Minister's Deputy Secretary-General.
Thai Prime Minister Abhisit Vejjajiva and Cambodian Prime Minister Hun Sen met on the sideline on Friday of the ASEAN Summit and related summits April 10 to 12, in beach resort Pattaya of Thailand's central province Chonburi.
The two sides have agreed to better organza future security border patrol of their own in a way to avoid misunderstanding and prevent new clashes," said Panitan.
The latest two rounds of border clashes between Thailand and Cambodia broke out last Friday when soldiers from each side fired at each other near the ancient 900-year-old Preah Vihear temple, causing casualties on both sides.
However, Panitan conceded that the border dispute between the two countries will take time to solve since the conflict has existed since the colonial period.
The two neighboring countries have disputed over the border demarcation in areas around Preah Vihear temple, which the Haegue International Court ruled in 1962 to belong to Cambodia. The temple in July last year listed as a UNESCO world heritage site, bringing fresh protests in Thailand and border military clashes.
Apart from the border issue, the two leaders also agreed to boost their bilateral trade and investment and to mutually invest in infrastructure projects, including road construction, said Panitan.
Abhisit plans to officially visit Cambodia on April 18, said Panitan.
Source: Xinhua
(CNN) -- China's economy grew 6.1 percent in the first quarter of 2009, down from 6.8 percent last quarter and from 10.6 percent year-on-year, state media reported on Thursday.
Xinhua: Figures released Thursday show the slowest rate of growth in nearly a decade.
Xinhua: Figures released Thursday show the slowest rate of growth in nearly a decade.
It is the slowest rate of growth for the Asian nation in nearly a decade, Xinhua reported.
The economic data was announced at a news conference by Ma Jiantang, director of the National Bureau of Statistics.
Gross domestic product reached 6.6 trillion yuan (about $939 billion) during the quarter, according to government-run news agency Xinhua.
Meanwhile, industrial output grew 5.1 percent for the quarter and showed signs of improvement -- climbing 8.3 percent in March.
China's consumer price index and producer price index -- two major indicators of inflation -- fell 1.2 percent and 4.6 percent, respectively, while retail sales grew 15 percent.
China is planning to boost the size and sophistication of its naval power, the head of the Chinese navy told state news agency Xinhua.
In a rare interview, Admiral Wu Shengli said the communist party leadership had made naval preparedness a priority, but did not provide specifics.
Last month, China said it would step up naval patrols to protect its interests in disputed waters.
Its navy was also involved in a confrontation with a US ship in March.
Admiral Wu told Xinhua that the Chinese navy would focus on speeding up the development of large warships as part of its efforts develop an oceangoing fleet.
His comments are being interpreted as a further hint that China will soon be getting its first aircraft carrier - often considered the most vital element in any navy seeking to project power over long distances, says the BBC's defence correspondent Rob Watson.
Regional role
The country is already engaged in extensive modernisation of its navy and its naval ambitious are increasingly directed at regional interests.
This year, for example, Beijing deployed ships off the coast of Somalia on anti-piracy duties - the country's first major overseas naval operation.
SOUTH CHINA SEA TENSIONS
Territorial claims from China, the Philippines, Taiwan, Brunei, Vietnam and Malaysia overlap in resource-rich sea
Hosts some of the world's busiest shipping lanes
China says the US was in its Exclusive Economic Zone - but the two sides disagree on what activities are allowed in an EEZ
It also said it plans to step up naval patrols in disputed waters in the South China Sea to protect against illegal fishing and other countries' "unfounded territorial claims" in oil-rich areas.
But while some of China's neighbours have been watching the build up of its naval and other military capabilities with some concern, it still lags a long way behind the United States, which remains the major naval power in the region, our correspondent said.
Last month, the US Navy complained that one of its survey vessels was "harassed" by Chinese ships in what it called international waters off Hainan Island, south China.
China rejected the complaint, accusing the US of breaking international law by operating in seas it claims as its own. The two nations later agreed to try to avoid rows.
Arsenal captain Cesc Fabregas is relishing his first trip to Wembley and he is desperate to return there to lift the FA Cup.
Fabregas' men face Chelsea in the semi-finals on Saturday as Arsene Wenger's men look to end their four-year trophy drought.
"I'm looking forward to it immensely," he said. "It is a great stadium from what I heard, with 90,000 fans, so it will be good to play a semi-final there.
"I dream of lifting the trophy every day, for me it is the best thing that would ever happen to me. It is a dream for me but we have to work very hard to get there."
Arsenal also have a Champions League semi-final against Manchester United to look forward to, after defeating Villarreal.
There is the possibility of Fabregas facing his former club, Barcelona, in the final.
"I would like to be in the final, that's all," he said.
Fabregas is feeling fresh after recovering from his serious knee injury earlier in the campaign.
"In the last six weeks I really worked hard with our physio, Tony Colbert, who was killing me," Fabregas said. "I thought he was crazy but now I know why he was doing it because I feel quite strong.
"This is just my fourth game. Still the last 10 minutes of each game I still feel a little bit but I think in the next game I will be there."
Wayne Rooney is desperately hoping Sir Alex Ferguson lets him loose on Everton in Sunday's FA Cup semi-final.
Rooney has never played in an FA Cup-winning side, picking up losers medals against both Arsenal and Chelsea since his arrival at Manchester United in 2004.
In addition, the England striker was forced to pull out of United's triumphant Carling Cup encounter with Tottenham seven weeks ago after picking up a virus on the eve of the game.
So Rooney is naturally keen to appear on the big stage again after his fine supporting role in the midweek Champions League victory over FC Porto.
"I missed the Carling Cup final when we last got to Wembley, so hopefully I will be part of the team that gets us to another final on Sunday," said Rooney.
The acrimony surrounding Rooney's £27million move to United followed by the abrupt downturn in his relationship with Toffees boss David Moyes has rather soured the forward's relationship with the Goodison Park faithful.
Yet as an individual, Rooney remains at heart the kid who learned his art in an Everton kit as he kicked a ball about in Croxteth, posters on his wall of heroes such as Paul Rideout, the man who scored the goal that beat United in the 1995 final.
Rooney was present at Wembley that famous day, cheering the men in blue on to victory.
This weekend he is on Ferguson's side.
"It still means something that it is Everton," said the England star. "It is the team I grew up supporting.
"It makes it a big day for me, although the most important thing is for United to reach the final."
Ferguson is set to make changes to the side that expended so much energy booking a European semi-final with Arsenal.
Ryan Giggs is one of those virtually certain to stand down, with Park Ji-sung in line for a start after not even making the bench on Wednesday.
Rooney can cope with the exertion though as his capacity for work appears almost inexhaustible.
Indeed, while Ferguson felt the need to offer a mild rebuke to Cristiano Ronaldo last weekend for not being enough of a team player, there have been times when United's long-serving manager has felt the need to demand his young forward becomes more selfish, a point reinforced by England coach Fabio Capello.
It is an inescapable fact however that when Ferguson needs a specific job doing, on Wednesday it was protecting John O'Shea in defence while being an effective performer at the other end of the field, it is to Rooney United turn, the trust rewarded so often.
"I have no problem with where I play," he shrugged.
"If it helps the team get results I will do it. The plan was in place - and we stuck to it."
