Economy review
The GDP increased by 5.8% in 2011 as compared to the previous year, according to the first estimate by Statistics Lithuania.
In 2011, a positive change in the gross value added was observed in all groups of economic activities. The largest growth in the gross value added was observed in construction (by 15%) and trade, transport and communication services (7.3 %).
In the fourth quarter 2011, GDP amounted to LTL 27 093 million at current prices and, compared to the same quarter in 2010, grew by 4.3 %.
Following the forecast of the Ministry of Finance, the economy will grow by 2.5% in 2012 and by 3.7% in 2013.
Export of goods amounted to EUR 20,2 billion. (in current prices) in 2011 while it was EUR 15,7 billion. in 2010. This suggests export increased by 28,9% in 2011 as compared with 2010.
Export of goods of Lithuanian origin (manufactured by Lithuania’s industry) that accounts for 65,9% of the total export of goods rose by 25,2 % in 2011 as compared with 2010.
In 2011, the largest share in exports was mineral products (25.6%), machinery and mechanical appliances, electrical equipment (10.3%), products of the chemical or allied industries (9.2%).
The most important export partners during 2011 were Russia (it purchased 16.6% of Lithuania’s total export of goods), Latvia (10,2%), Germany (9.3%), Poland (7.0%), Estonia (6.0%).
Although outlook for economic growth in the major Lithuania’s export markets worsened, their GDP should increase in 2012 and 2013 period according to European Commission’s economic forecasts (Autumn, 2011).
Industry (Mining and quarrying, manufacturing, electricity, gas, steam and air conditioning supply) increased by 7.4% in 2011.
Manufacturing that comprises 86,6% of the total industry production, rose by 10.4% in 2011.
Refined petroleum products, food products, chemicals and chemical products, furniture, wood and products of wood and cork comprised a significant share of the manufacturing production in 2011.
Manufacture of motor vehicles, trailers and semi-trailers, fabricated metal products (except machinery and equipment production), furniture, printing and reproduction of recorded media were the highest in 2011.
Transport. In January-December of 2011 transport sector expanded significantly. The overall amount of cargo transported through the Lithuanian railways consisted of 52.3 million tonnes – 8.9% more as compared to the corresponding period of the previous year. At the same time Klaipeda State Seaport and sea transport sector as a whole continued to handle more goods than any time before, although December of 2011 brought a ‑2.1% decrease of loaded and unloaded goods for sea transport sector as compared to the corresponding month of 2010. However, Klaipeda State Seaport became the biggest sea port by handled goods in Baltic States in September of 2011 and still holds this position. In 2011 a total of 45.5 million tonnes of cargo were handled by the seaport with Būtingė terminal combined. The figure is 13% larger than in 2010.
In total, 2.7 million of passengers were carried through Lithuanian airports in January-December of 2011. These figures marked an increase of 17.9% in passenger traffic as compared to the corresponding period of 2010. Some of this increase can be attributed to EuroBasket 2011 fan trips. However, the largest part of growth is mostly attributed to general increase in interest in visiting Baltic states for tourism purposes.
Retail trade (excluding wholesale and retail trade and repair of motor vehicles and motorcycles turnover) increased by 8.8% in 2011 and by 12.1% in December of 2011 as compared to the corresponding period of the previous year. In 2011 the retail sales increased in all economic activities of retail trade. Good results of the annual retail trade were mainly influenced by increasing retail sales by 14.6% in stores selling manufactured goods, particularly increasing retail sales of audio and video equipment, recordings, hardware, paints and glass, electrical household appliances, furniture and lighting equipment in specialised stores (+20.6%).
Economic sentiment indicator increased to ‑9 points level in January of 2012, still suggesting there were more pessimists than optimists in the economy for a fifth subsequent month amid uncertainty in international markets and fears over euro zone recession.
Industrial confidence indicator did not change from its December value and remained at ‑16 level in January of 2012. Confidence in industry has fallen by 5 points since January of 2011.
Confidence in construction increased by 3 points since last year’s December and reached -45 points level in January of 2012. The highly negative value reflects huge seasonal influence of cold weather on construction sector. The level of construction confidence indicator is 4 points higher than a year before (January of 2011).
Confidence in domestic trade fell in January by 15 points and reached ‑27 points level. The second half of winter is usually the worst time of the year for retail trade sector. In the mean time, the estimate in services increased by 5 points to 20 points level.
Consumer confidence indicator rebounded by 7 points in January of 2012 as compared to the previous month. It stands at ‑23 points level.
All of the confidence indicators in January of 2012 were below their long-term averages.
Positive confidence indicator figure means that there are more optimists than pessimists in a particular sector, negative figure means that there are more pessimists than optimists.
Labour market. Average unemployment rate reduced significantly to 15.4% in 2011 from 17.8% in 2010. Over the last quarter of 2011 unemployment rate decreased to 13.9% while it was 14.8 in third quarter.
Figures show that labour market is on the path of recovery and should make positive impact on household expenditures. However, new risks for labour market recovery can emerge from significantly slower economic growth or stagnation in EU. Increased operating efficiency and labour productivity, very cautious stance on employing new people in both public and private sectors makes labour market much more resilient than it was some years ago.
Lithuania‘s economic review, 2011 (pdf)
Last date edited: 2012-03-16
