Lithuania Q3 Economy Contracts for the First Time in Nearly Two Years

Lithuania’s economy expanded by 1.7% quarter-on-quarter in the final quarter of 2025, rebounding from a downwardly revised 0.1% fall in the previous three-month period, preliminary estimates showed. This marked the strongest economic growth since the third quarter of 2021, driven largely by positive performances from businesses engaged in industrial, wholesale, retail, transport, and storage enterprises. On a year-on-year basis, Lithuania’s GDP advanced by 3.1% in Q4 2025, following a downwardly revised 1.9% in the previous quarter. Compared with 2024, Real GDP rose by 2.7% on a seasonally and calendar-adjusted basis, while the unadjusted figure showed a 2.8% increase.

Lithuania’s economy stagnated quarter-on-quarter in Q3 2025, revised from preliminary estimates of a 0.2% contraction, following a 0.6% expansion in the previous quarter. Output fell in industry (-1.2% vs 0.4% in Q2), agriculture, forestry and fishing (-0.6% vs 0.4%), manufacturing (-1.0% vs 0.3%), and trade-related services (-0.5% vs 1.4%). These declines were partly offset by a rebound in construction (2.0% vs -0.6%) and faster activity growth in public administration and healthcare (1.7% vs 0.1%) and professional and technical activities (3.0% vs 2.1%). On the expenditure side, growth slowed for household consumption (0.4% vs 0.5%) and capital formation (3.4% vs 5.0%), while government spending fell 0.2% after a 0.3% rise in the previous period. On an annual basis, GDP expanded 2.0%, easing from 3.2% in Q2.

The economy of Lithuania declined by 0.2% quarter-on-quarter in Q3 2025, easing from an upwardly revised 0.6% growth in the previous three-month period, preliminary estimates showed. This marked the first quarter of contraction since the fourth quarter of 2023, primarily driven by negative performances from businesses engaged in industrial, transport and storage enterprises. On a year-on-year basis, Lithuania’s GDP grew by 1.7% in Q3 2025, down from an upwardly revised 3.2% in the previous quarter.