Lithuania’s GDP bounces back

VILNIUS - Lithuanian economic growth may accelerate this year at a faster pace than previously estimated on rebounding domestic demand and investments, the central bank said, reports Bloomberg. Gross domestic product will probably expand 6.2 percent this year, compared with a May estimate of 5.6 percent, Lietuvos Bank said on Aug. 11 in an e-mailed statement.
It kept its 2012 growth forecast unchanged at 4.8 percent.

Lithuania’s economy suffered one of the world’s deepest recessions in 2009, though it is now growing at the second-fastest rate in the European Union after Estonia. Output grew a preliminary 6.1 percent in the second quarter on year, driven by foreign demand for its products and strengthening domestic consumption.

“It’s the first time in more than two years that Lithuania’s real GDP is growing on recovering consumption and investment,” Mindaugas Leika, the central bank’s chief- economist, said in the statement.
The Finance Ministry estimates growth of 5.8 percent this year.
The central bank also raised its inflation forecast for this year to 4.4 percent from 3.8 percent, and the 2012 outlook to 4.1 percent from 3.9 percent.

The yield on Lithuania’s 10-year bonds rose 0.02 percentage point to 5.18 on Aug. 11.