GDP in Lithuania
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
|Economic Growth (GDP, annual variation in %)||3.8||3.5||3.5||1.8||2.2|
5 years of economic forecasts for more than 30 economic indicators.
Lithuania GDP Chart
Source: Statistics Lithuania and FocusEconomics calculations.
|Bond Yield||0.75||0.0 %||Sep 21|
|Stock Market||648||0.48 %||Sep 21|
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September 21, 2017
Lithuania’s industrial production jumped 12.5% year-on-year in August, a significant acceleration from July’s revised 4.5% expansion (previously reported: +4.1% year-on-year).
September 20, 2017
Consumer prices in Lithuania were flat in August from the previous month, following July’s 0.3% decrease.
September 1, 2017
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.
August 22, 2017
Lithuania’s industrial production rose 4.1% year-on-year in July, a significant deceleration from June’s revised 11.2% expansion (previously reported: +10.0% year-on-year).
August 18, 2017
Consumer prices in Lithuania fell 0.3% in July from the previous month, contrasting revised 0.3% increase observed in June and marking the lowest reading in almost one year.