GDP growth increased to 2.2% in Q1
According to the flash estimate, annual GDP growth increased to 2.2% in the first quarter of this year, in line with our expectations. Previous quarter growth was revised up from 1.9% to 2%.
Growth was mainly driven by household consumption as retail trade increased by 7.2% in the first quarter this year. However, export growth rebounded somewhat as well.
Economic sentiment indicator remained slightly higher than a year ago as retail and service confidence continued improving.
Outlook: more growth to come
We expect further acceleration in economic growth this year. Strong household consumption and investment will remain the main drivers, however, prospects for the exports improved as well. Some normalisation of exports with Russia is expected, but there are more potential for growth in strengthening markets in the EU. We forecast GDP to rise by 3.3% this year and 3.0% in 2017.
For more information about this report, please contact Ms. Vaiva Šečkutė, +370 5
258 2156, Vaiva.Seckute@swedbank.lt