Lithuanian GDP growth slowdown to 1.7% y/y confirmed

Lithuanian GDP growth slowdown to 1.7% y/y confirmed
By bne IntelliNews November 30, 2016

Lithuanian GDP grew an unadjusted 1.7% y/y in the third quarter of 2016, according to a second estimate released by Statistics Lithuania on November 30.

The reading confirms the first estimate released lasat month, and marks a slowdown in economic growth compared to a revised 1.9% for the second quarter. It is the second time growth has slowed since the first quarter of 2015, ending an encouraging trend that had suggested a robust recovery could be on the cards. The 2.4% gain recorded in first quarter of this year now looks to be a peak. 

Growth in the third quarter was mainly driven by manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, transportation and storage, accommodation and food services, Statistics Lithuania notes. The performance of the construction, agricultural, and forestry and fishing sectors proved a brake.

Household consumption expenditure grew 1.4% and general government expenditure 0.2%. Exports expanded 0.9%. Investment however dwindled 3.6%, in line with expectations.

In quarterly terms, GDP grew an unadjusted 9.8%. In adjusted terms, GDP grew 1.7% on the year and just 0.1% q/q.
 
Despite growth slowing, analysts maintain an optimistic outlook. "Household consumption will remain one of the main growth drivers, but will ease as real wage bill growth subsides. Capacity utilisation for the industrial sector is at a record high and growth in the main export markets is expected to remain stable while the negative effect due to the Russian crisis fades away," Swedbank noted in comments to the first GDP estimate.

Investment is likely to recover and export growth continue, they conclude. The analysts expect GDP growth to accelerate to 3% in 2017.

 

Data

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss