Lithuania: GDP records sharpest contraction since Q4 2009 in Q2
August 31, 2020
The economy contracted a revised 4.2% on an annual basis in the second quarter, according to more complete national accounts data. The result was below the preliminary estimate of a 3.8% fall and contrasted the first quarter's 2.4% increase. Q2's reading marked the sharpest downturn since Q4 2009 as the coronavirus pandemic took its toll on the economy.
The downturn was broad-based, with private consumption, public spending, fixed investment and exports all contracting. Private consumption contracted 7.0% in Q2, marking the steepest decline since Q2 2010 (Q1: +1.7% yoy) as containment measures to halt the coronavirus shut businesses at the start of the period. In addition, despite fiscal stimulus measures, government spending dropped at the sharpest pace since Q1 2010, contracting 2.2% (Q1: +1.0% yoy) in the second quarter. Fixed investment plummeted 13.0% in Q2, marking the worst result since Q1 2010 (Q1: +1.6% yoy) amid the uncertain economic backdrop.
Exports of goods and services dived 9.9% in Q2 (Q1: +4.8% yoy) amid halted external demand due to lockdowns in trading partners. In addition, imports of goods and services deteriorated, contracting 15.5% in Q2 (Q1: +1.5% yoy).
On a seasonally-adjusted quarter-on-quarter basis, GDP fell 5.5% in Q2 from the previous period's 0.3% decrease. Q2's reading marked the largest drop since Q1 2009.