World Economy

Lithuania Q2 GDP Growth Improves

Lithuania Q2 GDP Growth ImprovesLithuania Q2 GDP Growth Improves

Lithuania’s economic growth improved slightly in the three months ended June, after easing in the previous quarter, preliminary figures from the Department of Statistics showed Monday, RTTNews reported. Gross domestic product advanced a seasonally and working-day-adjusted 3.7% year-over-year in the second quarter, just above the 3.6% rise in the first quarter. During the fourth quarter of 2017, the rate of growth was 3.8%. On a quarterly basis, the economy expanded at a stable pace of 0.9% in the June quarter. In a separate report, the statistical office revealed the harmonized index of consumer prices rose at a slower pace of 2.2% yearly in July, following a 2.6% increase in June. Lithuania’s economy has grown faster than most other OECD economies over the past 10 years, unemployment continues to fall and public finances have stabilized after a long period of deficits and rising debt. However, the OECD says productivity has remained subdued, slowing down the convergence process as income remains at around two thirds of the OECD average. Income inequality is high and an ageing and declining population is putting pressure on the pension system.

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