Lithuania Q1 GDP Contracts for the First Time in Two Years

Lithuania’s economy shrank by 0.4% quarter-on-quarter in the first quarter of 2026, shifting from an upwardly revised 1.9% expansion in the previous three-month period, according to preliminary estimates. This marked the first quarterly contraction since the fourth quarter of 2023, driven largely by weaker performances from businesses engaged in construction, wholesale and retail trade, as well as transportation and storage service activities. On a year-on-year basis, Lithuania’s GDP advanced by 2.1% in Q1 2026, following an upwardly revised 3.3% growth recorded in the previous quarter.

The Lithuanian economy expanded by 1.7% quarter-on-quarter in the final quarter of 2025, in line with preliminary estimates and accelerating from a revised 0.3% growth in the previous quarter. The latest figure also marked the fastest growth since the third quarter of 2021, driven mainly by higher output in manufacturing (1.5% vs -0.4% in Q3), trade-related services (1.8% vs -0.3%), information and communications (2.6% vs 1.7%), and real estate transactions (1.6% vs 0.5%). On the expenditure side, gross fixed capital formation increased the most (1.8% vs 1.3%), while household (0.3% vs 0.2%) and government spending (0.1% vs 0.2%) rose slightly. Net external demand also contributed positively, with imports (-1.1% vs 1.9%) declining more than exports (-0.3% vs 0%). On an annual basis, the GDP grew by 3.1% in the fourth quarter, following a 1.9% expansion in the preceding period. For the whole year, the economy advanced by 2.9% compared to 2024.

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.