GDP in Lithuania
Lithuania - GDP
Growth accelerates to over two-year high in Q1
Strong wage increases and tight labor market conditions drove the Lithuanian economy to expand 4.1% in annual terms in the first quarter of 2017 (Q4: +3.1% year-on-year), according to detailed data released by the National Statistics Office on 1 June. The result matched the preliminary estimate and marked the fastest expansion since Q2 2014.
Strong domestic demand underpinned Q1’s sharp acceleration, as the negative spillovers stemming from reduced EU funding last year disappeared and gave way to a marked acceleration in fixed investment, which jumped 10.3% (Q4: +5.7% yoy). In addition, a tight labor market and rising wages ensured household spending growth remained buoyant (Q1: +5.8% yoy; Q4: +5.8% yoy). Meanwhile, growth in government spending moderated to 0.8% in Q1 (Q4: +2.8% yoy).
On the external side of the economy, strong domestic demand coupled with higher commodity prices boosted imports of goods and services (Q1: +11.9% yoy; Q4: +4.2% yoy). Strengthening global demand, in particular from Russia, caused exports to jump 7.8% (Q4: +2.1% yoy). With import growth outpacing export growth, the net contribution of the external sector plummeted from minus 1.8 percentage points in the fourth quarter to minus 3.7 percentage points in the first quarter of this year.
On a quarter-on-quarter basis, GDP grew a seasonally and working-day adjusted 1.4% in Q1, which marked a marginal deceleration from the 1.5% expansion seen in Q4.
Growth is set to be strong this year, supported by higher EU investment fund absorption and solid household spending. A sluggish implementation of reforms to liberalize the labor market and boost innovation could nevertheless constrain growth.
The Central Bank expects GDP to grow 2.4% in 2017. FocusEconomics Consensus Forecast panelists see the economy growing 2.7% in 2017, which is unchanged from last month’s estimate. In 2018, the panel expects GDP to expand 2.9%.
Lithuania - GDP Data
|Economic Growth (GDP, annual variation in %)||6.0||3.8||3.5||3.5||1.8|
5 years of economic forecasts for more than 30 economic indicators.
Lithuania GDP Chart
Source: Statistics Lithuania and FocusEconomics calculations.
|Bond Yield||0.85||0.0 %||Jul 18|
|Stock Market||617||0.81 %||Jul 18|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
July 18, 2017
Consumer prices in Lithuania rose 0.3% in June from the previous month, contrasting the revised 0.1% drop observed in May (previously reported: -0.2% month-on-month).
June 21, 2017
Lithuania´s industrial production jumped 8.0% year-on-year in May, a significant acceleration from April’s revised 2.3% expansion (previously reported: +1.8 yoy).
June 8, 2017
Consumer prices in Lithuania dropped 0.2% in May from the previous month, contrasting the 1.0% increase observed in April.
June 7, 2017
Strong wage increases and tight labor market conditions drove the Lithuanian economy to expand 4.1% in annual terms in the first quarter of 2017 (Q4: +3.1% year-on-year), according to detailed data released by the National Statistics Office on 1 June.
May 22, 2017
Lithuania´s industrial production rose 1.8% year-on-year in April, a significant deceleration from March’s 5.8% expansion.