Lithuania: GDP growth moderates in Q3
October 29, 2021
GDP rose 4.8% year-on-year in the third quarter of 2021, according to preliminary data. The result followed the revised 8.3% increase logged in Q2, which had marked the best reading since Q4 2007. Moreover, in seasonally-adjusted quarter-on-quarter terms, GDP remained stable in Q3, falling from the 2.0% expansion logged in the previous quarter.
The third quarter’s year-on-year slowdown in activity came despite more moderate restrictions throughout the period, and was mainly driven by a weak performance in the agricultural sector.
More detailed national accounts data for Q3 will be released on 1 December.
Looking ahead, GDP growth is expected to ease further in the coming quarter as the favorable base effect subsides and economic activity normalizes. A healthy inflow of EU funds should provide some support, although an ongoing surge in new Covid-19 cases threatens to inhibit the recovery.
Author: Jonuel Pérez, Junior Economist