SEB Bank AB (SEBA), Lithuania’s largest bank by assets, raised its economic-growth outlook for the country for a second time, citing better-than-expected first- quarter results and a resilience to Europe’s debt crisis.

The economy will probably expand 3.5 percent this year, compared with a May estimate of 3 percent, the bank said in an e-mailed report today. Growth may slow to 3 percent in 2013, it said.

Lithuania’s economy expanded 3.9 percent from a year earlier in the first quarter, the European Union’s second- fastest pace after neighboring Latvia.

The Baltic nation’s output advanced as domestic demand strengthened and the country’s main export markets of Russia, Germany, Latvia and Estonia, posted quicker economic growth than economists predicted.

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