Lithuanian GDP grew an adjusted 3.7% y/y in the second quarter, according to a first estimate released by Statistics Lithuania on July 30.
The reading marks an acceleration of 0.1pp against the revised annual growth of 3.6% recorded in the first quarter, keeping the country's economic growth above 3.5% for the seventh consecutive quarter.
Analysts predict growth will remain strong – albeit moderating a bit – throughout the rest of the year, before slowing down more clearly in 2019.
“We expect GDP to grow 3.2% this year and 2.5% next year, supported by strong consumption and investment activities,” Swedbank noted.
“Investment will be further supported by public sector and EU funds distribution. Trade wars remain the main macroeconomic risk right now especially to the transportation sector, but the tensions have eased slightly recently, with new tariffs being put on hold,” the bank also said.
In quarterly terms, GDP grew an adjusted 0.9%, the same rate as in the first quarter. In unadjusted terms, GDP grew 3.7% on the year and 7.7% q/q.
The annual growth in April-June was mainly driven by consumption and investment, with the external sector contributing less significantly, according to Swedbank.