With current growth rate Lithuania bound to return to pre-crisis economic well-being
Experts: With current growth rate Lithuania bound to return to pre-crisis economic well-being
In the first quarter of the year 2013, Lithuanian GDP accounted for EUR 7.64 billion,The Baltic Course reports with reference to the news agency ELTA.
Compared to the same quarter in 2012, the real GDP growth stood at 3.4 per cent.
Lithuania Statistics reports that the value added grew in the majority of companies of all economic activities in the first quarter compared to the respective quarter a year ago.
The GDP growth, comparing to the Q1 of 2012, was drive by a positive change in the production volume of manufacturing and industrial services (transport, storage, wholesale trade). However, construction companies were still experiencing decline.
“Economic growth was broad-based, with most of impulse stemming from manufacturing and linked services, such as transportation, storage and wholesale trade,” commented chief economist from DNB BankasJekaterina Rojaka.
Spreading economic weaknesses in the euro zone and emerging downside risks coming from Russia – the key export markets – point to gradual slowdown in Lithuania’s economic momentum in 2013, especially in the second half of the year.
Delayed capital investments and not responsive private consumption will not compensate the deceleration in export markets. Prolonged winter season did not allow for revival in construction, which still stays in red. However, we expect construction sector to bounce in 2013, finally adding to economic growth.
DNB Bankas expects Lithuania’s economic momentum to slow down further to annualised two per cent in 2013 on the back of adverse external environment and higher base. Notwithstanding the slowdown next year Lithuania’s together with Estonia are forecast to restore their pre-crisis level in value added in real terms.
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