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REVIEW OF ECONOMIC AND SOCIAL SITUATION OF THE REPUBLIC OF LITHUANIA IN 2008

In 2008, real GDP growth slowed down compared to the third quarter of 2007 and reached 3.0% based on preliminary data. The GDP growth was determined by sufficiently rapid growth of the value added during the 1st and 2nd quarter of 2008. Due to considerably reduced growth of domestic demand in the 4th quarter of 2008 the generated rate of GDP was by 2.2 % less that during the same period of 2007.

	2004 y	2005 y	2006 y	2007 y	2008 y
Changes in gross domestic product, %	7.4	7.8	7.8	8.9	3.0

With slow down of the economy the number of available jobs in the national labour market reduced. In 2008, compared to 2007, the number of the unemployed kept growing. As of 1 January 2009 95 thousand of the unemployed were registered in the labour exchange, which was 25.3 thousand (or 36%) more than on 1 January 2008.

A fairly sufficient growth of the prices of consumer goods and services was maintained. In 2008, annual inflation accounted for 8.5% and it was 0.4 percentage point more than in 2007. The level of annual inflation was mainly determined by higher prices of goods and services relating to dwelling, water, electricity, gas and other fuel groups as well as food products.

The investment process was slowed down. In 2008, compared to 2007, all investment in tangible assets increased by a mere 0.3%, and foreign direct investments on 1 January 2009 in Lithuania made LTL 31.48 billion and it was 11.3 % less compared to 1 January 2008.

Last year, compared to the same period of 2007, export developed (28.4%) more rapidly than import (18.0%). Export growth was mostly fostered by renewed export of mineral products, and import development was prevented due to reduced growth of internal demand and investment process.

Due to reduced foreign trade deficit  the current account deficit (CAD) amounted to 11.6 % of the GDP. (in 2007, CAD reached 14.6 % of the GDP).

In 2008, compared to 2007, Lithuanian enterprises, engaged in mining quarrying and manufacturing industry, sold 3.2% more of their production. However, this increase was in fact determined by the renewed production capacities of AB „Mažeikių nafta“. Compared to the same period of the previous year, sales of production of Lithuanian enterprises engaged in mining, quarrying and manufacturing, as well as of refined oil products were reduced by 5.0%.

Last year, due to restrictions imposed on crediting as well as due to pessimistic expectations of the consumers, retail trade volumes increased by mere 4.1%, compared to 2007, while the growth in 2007 reached 17.2%.

Survey of Lithuanian economy, 2008/1, 2008/2

Statistical Yearbook of Lithuania 2008

Lithuania in Figures 2008

Review the economic the economic and social situation in the Respublic of Lithuania in 2007

Survey of Lithuanian economy, 2007/1, 2007/2

Review the economic the economic and social situation in the Respublic of Lithuania in 2006

Survey of Lithuanian economy, 2006/1,2006/2

Survey of Lithuanian economy, 2005/1,2005/2

Last updated :17.03.2008