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Lithuania’s statistics department LSD has revised the country’s GDP growth rate to a working day ad-justed 6% from the flash estimate of 5.9% announced a month ago, writes news2biz.

All economic activities delivered positive increase in added value, with construction (+19%), manu-facturing industry (+10%) and fi-nancial intermediation (+10%) pro-ducing double-digit growth rates.

Slower development was re-corded in trade, hotels and restau-rants (+7%), real estate operations (+3%), IT & telecom (+2%) and agriculture (+3%).
In Q4, the economic expansion rate slowed to the year’s lowest of 4.5% with industry (mining & quar-rying, manufacturing and utilities) becoming the first sector to plunge into annual contraction of 1.1%, and some other sectors turning in low rates (manufacturing: +1.5%, fi-nance: +3.4%, real estate: +3.9%).

On the expenditure side, household consumption rebounded with a 6.1% rise in 2011 after two contraction years (-18% in 2009, -5% in 2010). In Q4, the annual growth rate peaked at a post-crisis highest of 8.1%. Meanwhile, government con-sumption expenditure inched up 0.4% during the year as healthy growth in Q2 and Q4 was marred by a contraction in Q1.

Gross fixed capital formation in-creased by 17% last year. H1 2011 looked quite bright with 46% and 21% rises in Q1-Q2, but during H2 growth slowed to 8-10%, partly due to the high comparison base, but partly also because of deteriorating investment sentiment.

In February, the central bank Lietu-vos bankas lowered its GDP fore-cast for 2012 significantly, to +2.2% from +3.5% released in November.

The advance of private consump-tion that contributed notably to last year’s economic growth will, accord-ing to the bank, this year slow down to 2.5% (3.5% expected in Nov).

The bank said there are now more signs pointing towards unfa-vourable economic development prospects for Lithuania’s key trading partners, especially in the form of the lingering Eurozone debt crisis. LB also noted that the bankruptcy of Snoras bank could shave up to 0.5 percentage points off the GDP growth rate.

In a similar fashion, the Euro-pean Commission slashed in Febru-ary its 2012 GDP growth forecast for Lithuania to 2.3% from 3.4%.

source: www.balticbusinessnews.com

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