Lithuania: Growth moderates further in Q2
September 6, 2012
In the second quarter, GDP grew 2.2% over the same period last year. The result was below the 3.9% expansion recorded in the first quarter but slightly above the 2.1% reported in the 30 July flash estimate. The reading represents the slowest GDP expansion since the third quarter of 2010. The moderation was caused by a deterioration in domestic demand, whereas the external sectors' net contribution to growth improved compared to the previous quarter. Private consumption grew 4.1% over the same period last year, down from the 7.7% rise observed in the previous quarter, while public spending added 1.0% (Q1: +0.1% yoy). Gross fixed investment grew 0.9%, a strong moderation compared to the 8.4% increase recorded in Q1. The external sector's net contribution to overall economic growth rose from 0.4 percentage points in the first quarter to 3.6 percentage points in the second, as exports outpaced imports. Exports of goods and services moderated from a 7.2% increase in Q1 to a 0.8% expansion in Q2, while imports contracted 3.8%, contrasting the 6.6% rise in the first quarter. A quarter-on-quarter analysis, however, does not corroborate the slowdown suggested in the annual figures, as GDP expanded a seasonally and working-day adjusted 0.5% over the previous quarter, which was up from the 0.3% increase recorded in the first quarter.
Author: Armando Ciccarelli, Head of Data Solutions