“Lithuania’s gross domestic product (GDP) edged up by 2.1 percent in the second quarter of this year compared with the same period last year. We expected a 3-percent increase this quarter, hence the latest results are somewhat disappointing,” Rokas Bancevičius, senior analyst at the economic research unit of DNB bank, said in a press release.
Rūta Medaiskytė, chief economist with Finasta bank, said that GDP growth in the second quarter missed even the most cautious projections.
“Slowdown of economic growth cannot be avoided considering the situation in Western European economies, which is getting worse. Lithuania’s economy should resist the recession but changes in the next quarters will probably only suffice to maintain the current status quo,” she said in a press release.
Meanwhile, Nerijus Mačiulis, chief economist with Swedbank, said that the growth rate was not disappointing considering that a refinery in Mažeikiai, which accounts for approximately one-fourth of Lithuania’s industrial output, was closed for turnaround for five weeks during the second quarter.
“The sectors that grew at fastest rates in the second quarter probably included construction, wholesale and retail as well as information and telecommunications,” he said.
Lithuania’s economic growth might exceed 3 percent in the second half of this year, the economist said.
“Further outlook will depend on the effectiveness of European policymakers and authorities in restoring the confidence of financial markets... If proper political decisions are taken, Lithuania’s economic growth could exceed 4 percent next year,” he said.
DNB bank expects Lithuania’s GDP to grow by 3 percent this year. Finasta sees the growth of 2.8 percent, and Swedbank, of 3.3 percent.
Lithuania’s gross domestic product (GDP) grew by 3 percent in the first half of 2012, year-on-year, to 53.351 billion litas (EUR 15.46 b) at current prices, Statistics Lithuania reported earlier on Monday.
In the second quarter alone, the economy increased by 2.1 percent, year-on-year, to 28.053 billion litas, the statistics office said.
