"The current GDP growth is not very fast – we are used to a much faster pace of economic development. Nevertheless, the analysis shows that Lithuania's economy would have grown at a pace that is close to the potential GDP growth pace, if the construction sector had not lost activity," Darius Imbrasas, senior economist of the bank's Macroeconomics and Forecasting Division, said in a comment to the media.
In his words, faster economic growth in 2017 should be driven by the recovering use of European Union (EU) assistance funds (which would prompt investment growth) and the gradual improvement of the situation of main trade partners (which should boost exports).
"Internal demand should also continue rising – the favorable situation on the labor market for households will be a key factor behind internal demand. Uncertainty about economic development of EU countries and other trade partners caused by the United Kingdom's departure from the EU, as well as the slower than expected economic growth worldwide, particularly in developing countries, may also have an impact on economic perspectives," Imbrasas.
According to data provided by Statistics Lithuania, the country's GDP went up by a seasonally and workday-adjusted 2.1% in the first nine months of 2016 from a year ago to reach 28.439 bln euros at current prices. In the third quarter of 2016, the GDP grew by seasonally and workday-adjusted 1.6% to 10.285 billion euros y-o-y, up by 0.1% from the second quarter.
