GDP in Lithuania

Lithuania GDP | Economic News & Forecasts

Lithuania - GDP

Growth maintains momentum in Q2

Healthy exports of goods and services due to strong demand from Europe sustained annual economic growth in Q2 at levels close to Q1’s result, according to detailed data released by the Statistical Institute on 1 September. GDP expanded 4.0% year-on-year in Q2 (Q1: +4.1% year-on-year), slightly higher than the preliminary 3.9% figure released in July.

Fixed investment grew 4.5% in Q2 compared to the same quarter of the previous year, a slowdown compared to Q1’s 10.3% rise. Investment growth was dragged down by weaker investments in dwellings and transport equipment. Nevertheless, households borrowed more to make real estate purchases, while companies invested to improve efficiency and capacity to make up for last year’s low investment. The European Union’s allocation of grants from the Structural Funds and Cohesion Fund also gained speed, which, together with low interest rates, supported fixed investment growth. Household consumption levels, meanwhile, slipped in Q2 compared to Q1, recording growth of 3.5% versus 4.5%, respectively. This slip likely reflected rising inflation catching up on consumers’ purchasing power. Employment in 2017 has also reduced compared to the end of 2016. Government consumption growth remained unchanged in Q2 from Q1’s 1.2%.

On the external front, the economy fired on all cylinders as exports of goods and services rose 12.3% in Q2 compared to the same quarter of the previous year. This was up from the 9.4% year-on-year growth recorded in Q1. The expansion in exports was supported by strong growth in low value-added manufacturing exports, such as furniture exports. At the same time, imports grew at 8.9% in Q2, a lower rate of expansion compared to Q1’s 11.8%. Accordingly, the external sector contributed 2.3 percentage points to Q2’s overall expansion, contrasting with its 2.3 percentage-point detraction in Q1.

On a quarter-on-quarter basis, GDP grew a seasonally- and working-day adjusted 0.6% in Q2, down from the 1.3% increase recorded in Q1.

Looking ahead, growth is set to stay strong for the remainder of this year, supported by higher allocation of grants from the EU Structural Funds and Cohesion Fund. Household spending and external demand are expected to remain strong as well. A sluggish implementation of reforms to liberalize the labor market and boost innovation could nevertheless constrain growth.

The Central Bank expects GDP to grow 2.6% in 2017. FocusEconomics Consensus Forecast panelists see the economy growing 3.2% in 2017, which is unchanged from last month’s estimate. In 2018, the panel expects GDP to expand 2.9%.

Lithuania - GDP Data

2012  2013  2014  2015  2016  
Economic Growth (GDP, annual variation in %)3.8  3.5  3.5  1.8  2.2  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Lithuania GDP Chart

Lithuania GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Statistics Lithuania and FocusEconomics calculations.

Lithuania Facts

Bond Yield0.750.0 %Sep 21
Stock Market6480.48 %Sep 21

Sample Report

Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.


Start Your Free Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form