Experts raised forecast of Lithuania’s GDP growth

July 30, 2007 at 12:32 pm Leave a comment

As the Lithuanian Statistics department announced GrowthLithuania‘s gross domestic product grew by 8.1 percent in the first half of this year compared with a year.  In the second quarter, GDP expanded by 8 percent year-on-year.“Domestic consumption, which continues to grow on the back of strong consumer expectations, accounts for a large part of GDP. Services export growth is also good enough. Industrial export figures, apart from difficulties at Mazeikiu Nafta (Mazeikiai Oil), are good too,” Rimantas Rudzkis, the chief analyst with DnB Nord Bankas, said, commenting on the report.The analyst predicted that the economy would grow at a similar rate in the second half of the year.

“The fundamental factors are unlikely to change very much. However, we cannot rule out the possibility of a slower growth, given the first reports about falling real estate prices from the neighbouring Latvian and Estonian markets,” he added.

Hansabankas Markets also raised its forecast for economic growth in Lithuania for this year to 8 percent from its previous estimate of 7 percent, and for 2008, to 7 percent from 6.5 percent.

“This year Lithuania’s economic growth will remain robust, underpinned by the growing consumption and a very fast expansion of sectors providing for domestic consumption needs,” said Tomas Andrejauskas, head of the Financial Markets Service at Lithuania’s Hansabankas.

“Unfortunately, as a result of intensive business expansion and emigration, there is a workforce shortage in many business areas already. That has created favourable conditions for excess growth of prices and wages,” he added to BNS.

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Entry filed under: Baltic States, Estonia, Latvia, Lithuania, Northern Europe, Politics.

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