Country Report Lithuania
- ID: 2138679
- January 2016
- Region: Lithuania
- 25 Pages
- The Economist Intelligence Unit
Real industrial output rose by 3.4% year on year in December (working-day adjusted), bringing full-year growth to 4.5%, according to data from Statistics Lithuania. This marked a respectable pick-up from zero annual growth in 2014, and supports our forecast of a similar growth rate in 2016.
In a breakdown by goods type, consumer durables were the stand-out category in December, growing by 15.6% year on year, whereas capital goods (durable goods used to produce other goods and services) also saw robust growth, at 10.6%. This implies that investment demand from firms is becoming a more important driver of growth, along with households' willingness to buy big-ticket items. Consumer durables were the strongest-growing category in January-December as well, rising by 12.9% year on year.
Nominal data show that sales and services of industrial enterprises abroad fell by 0.7% year on year in January-December, owing primarily to a 15% drop in sales of refined petroleum products resulting from the fall in the global oil price. Excluding these products, foreign sales and services rose by 4.9% year on year. Sales to non-euro zone countries in particular picked up, as the weak euro made Lithuanian exports more affordable outside the single-currency area.