Lithuania Economic Outlook
October 27, 2020The opposition Homeland Union party (the Conservatives) claimed the victory in the country’s general election after winning the first round on 11 October and solidifying their position in the second round on 25 October. The Conservatives are seen forming a center-right coalition with two liberal parties—the Freedom Party and the Liberal Movement—thus cementing a majority in the 141-seat parliament. The Conservatives’ solid economic credentials and the need for coalition-building with liberal parties bode well for business conditions and should ensure the continuity of economic and social policies. Meanwhile, the economic backdrop seemed to improve notably in Q3. Industrial output expanded in the quarter for the first time this year as companies ramped up capacity amid improving economic sentiment. Moreover, retail sales soared in July–August, hinting at recovering consumer demand in Q3.
Lithuania Economic GrowthThe economy will rebound strongly next year, after 2020’s pandemic-induced contraction, although the downturn should be the softest in the EU. A revival in foreign and domestic demand, and inflows of EU funding are set to underpin the rebound. Meanwhile, the need for coalition-building post-election should ensure economic policy continuity, further supporting the recovery. FocusEconomics analysts see the economy rebounding 3.8% in 2021, which is down 0.3 percentage points from last month’s projection. In 2021, the economy is expected to grow 3.3%.
Lithuania Economy Data
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Lithuania Economic News
January 25, 2021
Industrial output jumped 3.6% in year-on-year terms in December, picking up from November’s 0.6% uptick and marking the strongest increase since September 2019.
January 12, 2021
Consumer prices fell 0.03% from the previous month in December, a smaller drop than November's 0.14% drop.
December 23, 2020
Industrial output expanded 0.9% in year-on-year terms in November, which was above October's 0.4% increase.
December 9, 2020
Consumer prices dropped 0.14% over the previous month in November, swinging from October's 0.07% increase.
December 1, 2020
According to a second estimate released on 1 December, GDP ticked up just 0.1% year-on-year in the third quarter, contrasting the sharp 4.6% contraction tallied in the second quarter.