The Baltic nation of Lithuania is bracing for a nationwide party as it prepares to mark its symbolic 1,000th birthday and give itself some respite from a daily fare of economic crisis headlines.

Lithuania's woes - the economy is expected to shrink around 18 percent this year - have cast a shadow over its capital Vilnius' year-long status as a European Capital of Culture.

That has left the country of 3.4 million people determined to put on a show tomorrow, when it marks its national day with a combination street partying and official ceremonies with guests such as the monarchs of Denmark, Norway and Sweden plus the presidents of neighboring republics.

Lithuania declared independence from the crumbling Soviet Union in 1990. Like many ex-communist states, however, it has been keen to underline that it is no newcomer on the map of Europe.

Its national day, for example, commemorates the 1253 coronation of its first king, Mindaugas. The reconstructed palace of Lithuania's monarchs will be inaugurated as part of festivities that also include a performance by a choir of 11,000.

"This event is very important ... because Lithuania is again an independent state," said Ernesta Darguziene, head of a folk ensemble.