Lithuania's economy has maintained a stable growth pace, analysts say after the country's statistics office, Statistics Lithuania, said earlier today that the country's GDP grew 3.6 percent over a quarter.
Analysts warn: economy is slowing
© Shutterstock

But, they add, growth is losing its momentum and one could hardly expect such growth in the last quarter of this year or next year.

"The GDP growth pace is only slightly slower than in the first half. The GDP figures were not surprising as, in the eurozone context, Lithuania still remains a dynamic economy whose growth is strongly affected by internal demand," Indre Genyte-Pikciene, a senior expert from the Lithuanian Free Market Institute, says.

In her words, contrary to mature eurozone states, consumers in Lithuania still have high expectations, with optimism supported by low inflation and still fast-rising wages.

Aleksandr Izgorodin, an economist from SME Finance, believes, however, that Lithuania's economy provided some surprises in the third quarter, both good and bad.

„I was positively surprised by the results of exporting sectors, including industry and transport, as well as the construction and real estate sectors that preserved fast growth pace. But the retail sector provided a negative surprise as it shows a fairly significant slowdown," the analyst told BNS Lithuania.

He pointed to the country's industrial sector, generating 75 percent of the total export volumes after it recorded a solid 5.5 percent growth. Moreover, out of all EU member states, Lithuania was the leader in terms of the export outlook dynamics as all EU producers cut their estimates but Lithuania's cut was the lowest.

Nevertheless, the LFMI expert says that as the economies of export markets important for Lithuania are slowing, with even signs of recession in some of them, Lithuania's export is slowing too.

"The growth in exports of Lithuanian-origin goods slowed last summer, with exports of goods produced in Lithuania, except for mineral products, rose only 0.4 percent more than a year ago," Genyte-Pikciene said.

Darius Imbrasas, a senior economist from the Bank of Lithuania, says that due to the existing economic tendencies, one should be more cautious about next year's growth.

The Bank of Lithuania estimates 3.7 percent GDP growth this year, and growth should slow to 2.5 percent next year.

"Growth will be affected by the slowdown in the growth of household income and also slower growth in investment due to slower growth in EU financial support," the analyst said.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Pandemic threats: how lockdown affected startups

The COVID-19 pandemic faced by the world paralyzed a significant number of businesses ....

Lithuania could apply for EUR 6.3 billion from EU recovery fund

The European Commission has proposed that Lithuania could apply for 6.3 billion euros from the new...

Kaunas opens for more street food

The Square of the Constituent Seimas and the Daugirdas Amphitheater are two new places where Kaunas...

Wizz Air resumes flights from Vilnius to Dortmund

Hungarian airline Wizz Air is resuming its regular flights from Vilnius to Germany's western city...

Market leader in credit management services plans to expand its team in Lithuania

Intrum , a market leader in credit management services , has decided to expand its global business...

Top news

Lithuania lifts self-isolation rule for travellers from 24 countries

Easing the lockdown measures, the Lithuanian government has approved that travellers coming from 24...

Veryga: most coronavirus victims had underlying diseases

The majority of the coronavirus victims in Lithuania had underlying health conditions when they got...

Only 3 new coronavirus cases in Lithuania

On Sunday, 3 new COVID-19 cases were detected in Lithuania. Since the outbreak of the pandemic,...

Baltrenas: we can help healthcare to develop medical intelligence

Lithuania's military intelligence is ready to help the country's healthcare system to bolster its...

Around 400 music groups join for special initiative

On Monday, the nationwide thank-you campaign ‘Thank you, Lithuania!’ has attracted a record...

|Maža didelių žinių kaina