Lithuanian Economy - November 15, 2011
Strong economic growth expected to decelerate
- Lithuania’s annual GDP growth accelerated further and reached 6.6% in the third quarter of this year. However, growth will moderate in the last quarter and in 2012 as the global economy slows and growth expectations worsen.
- In September, double-digit growth in retail trade (except for motor vehicles) continued. However, annual industrial production growth decreased during 2011 from 14.6% in the first quarter to 6.9% in the third.
- Growth expectations have been worsening for a few months as the global turbulence created by the ongoing euro zone sovereign debt crisis is here to stay for some time. Decreased foreign demand will have a negative impact on the export sector, while a loss in business and household confidence will lower the potential of a further domestic demand increase.