Lithuania Economic Outlook
November 21, 2017Growth moderated in the third quarter but remained robust overall, according to a new flash release. Although details are still outstanding, the notable deceleration in retail sales growth throughout the quarter suggests softer private consumption. Despite robustly rising wages, a spike in inflation and growing unemployment likely weighed on consumer spending. Nevertheless, industrial production continued to expand healthily in Q3, underpinned by strong external demand; higher overseas orders from the EU and CIS countries again boosted exports. On 13 November an IMF mission concluded its visit to Lithuania. The IMF highlighted that the economy is enjoying a fast and broad-based expansion, but also noted that wage growth has outpaced productivity since 2013. This threatens competitiveness going forward and could translate into slower export growth and higher inflation.
Lithuania Economic GrowthThe economy is set to record another year of robust expansion in 2018, underpinned by strong inflows of EU funds, solid external demand and healthy household spending. Moreover, robust fiscal parameters provide the government with ample room to maneuver. Nevertheless, a resurgence in regional geopolitical tensions could weigh on exports, and fast wage growth could result in fewer new jobs and drag on private consumption. The FocusEconomics Consensus Forecast panel expects the economy to expand 3.3% in 2018, up 0.1 percentage points from last month’s estimate, and 2.9% the following year.
Lithuania Economy Data
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Lithuania Economic News
December 11, 2017
Consumer prices in Lithuania increased 0.3% in November from the previous month, following October’s 0.2% increase.
December 1, 2017
According to detailed data released by the Statistical Institute on 1 December, GDP expanded 3.1% year-on-year in Q3 (Q2: +4.1% year-on-year), confirming the preliminary figure released in November.
November 23, 2017
Lithuania’s industrial production expanded 6.7% year-on-year in October, accelerating from September’s revised 5.2% expansion (previously reported: +4.8% year-on-year).
November 11, 2017
Consumer prices in Lithuania increased 0.2% in October from the previous month, following September’s 1.0% increase.
October 30, 2017
GDP expanded 3.1% in Q3 from the same period last year, significantly lower than the revised 4.1% increase in Q2 (previously reported: +4.0% year-on-year) but still a solid result, according to a flash estimate released by the Statistical Institute on 30 October. Growth came mainly on the back of solid performances registered in wholesale and retail trade, repair of motor vehicles and motorcycles, transportation and storage, accommodation and food service.