Lithuania: Growth remains sturdy in Q4 2019
GDP rose 3.8% in year-on-year terms in Q4 2019, according to preliminary national accounts data released by Lithuania’s Statistical Institute on 30 January. This matched the previous quarter’s revised print (previously reported: +3.7% year-on-year), bringing annual growth for the full year of 2019 up to 3.9% (2018: +3.6% yoy). Healthy growth in the manufacturing, and retail and wholesale trade sectors drove the economy in the fourth quarter.
Meanwhile, in seasonally- and working day-adjusted quarter-on-quarter terms, growth accelerated to 1.3% in Q4, from 0.3% in the Q3 (previously reported: +0.2 seasonally-adjusted, month-on-month), marking the strongest expansion since Q4 2018.
Looking ahead, growth is seen slowing sharply this year, amid a broad-based downturn. Feebler household spending and slowing investment activity are set to restrain domestic activity amid slowing wage growth and increasing labor shortages, while waning demand from the EU bodes ill for the external sector.