Lithuania: Economy remains buoyant but slows in the second quarter
July 28, 2011
According to the flash estimate released on 28 July by the National Statistics Office, GDP surged 6.1% in the second quarter over the same period the year before, which was below the 6.9% increase recorded in the previous quarter. The moderation was partially due to a fading base effect, as the economy grew out of recession in the second quarter of 2010. In addition, the result undershot analysts' expectations, which saw the economy expanding 6.6%. During the first half of the year, GDP climbed 6.5% compared to the same period last year. According to the press release, the strong growth in H1 was mainly attributable to growth in industrial production and a recovery in consumption. A quarter-on-quarter comparison corroborates the moderation suggested in the annual figures, as GDP increased a working day and seasonally adjusted 0.2% over the first quarter, when the economy expanded 3.5%. The second quarter expansion represents the sixth consecutive quarterly increase in GDP. More detailed national account data will be published on 30 August. The Central Bank expects GDP will grow 5.6% this year and 4.8% in 2012.