Bloomberg News

Lithuania Revises Third-Quarter Economic Growth Higher to 6.7%

November 29, 2011

Nov. 29 (Bloomberg) -- The Lithuanian economy expanded at a faster rate in the third quarter than previously estimated, led by rising construction output, exports and a recovery in domestic demand.

Gross domestic product grew a revised 6.7 percent from a year earlier, compared with a previously reported 6.6 percent, the statistics office in the capital Vilnius said today by e- mail. That’s the quickest growth rate since the first quarter of 2008. GDP rose a seasonally adjusted 1.4 percent from the second quarter.

The Baltic economy, which experienced the world’s second deepest recession in 2009 after Latvia, is weathering the euro region’s sovereign-debt crisis and growing at the second-fastest rate in the European Union this year. Exports, 61 percent of which are sold to the 27-member bloc, jumped 26 percent in the third quarter, while retail sales increased 19.5 percent.

The economy grew 6.4 percent through the first nine months this year from a year earlier, the statistics office said.

Household spending surged 5.9 percent in the third quarter, while public expenditure grew 0.1 percent, the office said. Construction output rose 17.6 percent, the most of any category in the GDP breakdown.

The government may revise down its 4.7 percent economic growth estimate for next year after the European Commission its outlook to 3.4 percent, Finance Minister Ingrida Simonyte has said.

The Baltic economies of Lithuania, Estonia and Latvia will probably grow at a faster pace than the rest of Europe on public investment, the commission said on Nov. 10. Estonian GDP rose 7.9 percent in the third quarter, while the Latvian economy expanded 5.7 percent.

--Editors: Alan Crosby, James Gomez

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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