Lithuania: Economic growth continued gaining momentum in Q1
May 31, 2016
According to more detailed data released by the National Statistics Office on 31 May, GDP rose 2.3% in annual terms in Q1. The tally was revised up from the 2.2% growth initially reported in the preliminary estimate. The first quarter expansion represented an acceleration over the 2.0% increase seen in the fourth quarter and the fastest pace of expansion since Q3 2014.
Private consumption growth increased from 4.3% in Q4 to 5.7% in Q1. This marked the fastest reading since Q3 2013. Growth in government consumption remained stable in Q1, mirroring the 0.5% increase recorded in Q4. Conversely, fixed investment plummeted from a 9.8% increase in Q4 to a 6.8% contraction in Q1.
In the first quarter, exports accelerated notably from a 0.3% increase in Q4 to an 8.8% expansion in Q1. Imports increased from a 3.0% rise in Q4 to a 5.8% expansion in Q1. As a result, the net contribution of the external sector to overall growth improved markedly from minus 2.2 percentage points in the fourth quarter to plus 2.1 percentage points in the first quarter—the strongest contribution in six quarters.
On a quarter-on-quarter basis, GDP grew a seasonally- and working-day adjusted 0.8% in Q1, which marked an improvement over the 0.5% expansion tallied in Q4.
Author: David Ampudia, Economist