Lithuania's economy growing faster than expected in Q1

17.05.2012, 15:02

Following faster than expected growth over the first quarter of the year 2012, the Bank of Lithuania has recently lifted its growth forecasts for this and next year. The country's GDP is now expected to rise by 3% in 2012 and 3.5% in 2013 or by 0.8% and 0.2% higher than the initial forecast, Invest Lithuania says, according to a report in The Baltic Course..

"The Lithuanian economy is growing faster than expected. So are the investments of Lithuanian businesses in gross fixed capital. With stable growth over the last quarter, Lithuania's GDP will stand out compared to other European countries. This will attract the attention of foreign investors and increase their interest in Lithuania," Invest Lithuania General Manager Milda Darguzaite said.

The higher consumption rate at the end of last year and at the beginning of this year has resulted from a moderate increase in the number of employed persons, a gradual rise in wages and the consequent improvement of the population's expectations.

Based on the forecasts of the Bank of Lithuania, private consumption will grow by 4.6% this year and 3.1% next year.