Lithuania’s real gross domestic product (GDP) in the third quarter of this year amounted to 19.2 billion euros at current prices, up 0.1 per cent compared to the same time last year, according to the first estimate published by the State Data Agency.
Lithuania’s GDP fell by 0.1 percent in the third quarter compared to the second quarter (excluding seasonal and working day effects).
The performance of the industrial, wholesale and retail trade and real estate sectors had the largest negative impact on GDP in the third quarter.
Three-quarter GDP stood at 53.2 billion euros at current prices, down 0.5 percent compared to the same period last year.
The second estimate of third-quarter GDP will be published by the State Data Agency on 30 November.
Recession that most people don’t feel
The change in GDP will not be felt by the population and the labour market, says economist Alexander Izgorodin.
“The economic growth is hovering around zero for the time being, which I would say is good news for the people and the labour market, because in reality the labour market and the people don’t feel such a technical drop or growth or zero change in GDP, the recession is more mathematical-econometric than a real-life recession,” Izgorodinas, analyst at Citadelė Bank, told BNS on Tuesday.
“According to the latest macro indicators, if you look at it, we are moving from a technical recession to a more stagnant situation,” he added.
Indrė Genytė-Pikčienė, economist at INVL, says Lithuania’s economy is showing resilience.
“Despite uncertainty, rising interest rates, the shock of inflation, energy prices higher than before the war and unstable oil prices, the Lithuanian economy is showing resilience. The vigorous expansion of the Lithuanian economy in recent years has allowed us to build up financial reserves and prepare for more difficult times,” she said.
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