Lithuania Economy Grows 1.7% in Q2

Lithuania’s economy grew by 1.7% quarter-on-quarter in the second quarter of 2026, rebounding from a revised 0.1% contraction in the first quarter, according to flash estimates. The largest positive contributions to quarterly growth came from the manufacturing, construction, wholesale and retail trade, transportation and storage sectors. On an annual basis, GDP increased by 4.1%, accelerating from a revised 2.5% increase in the previous quarter and marking the fastest pace of growth since the fourth quarter of 2024.

Lithuania’s economy shrank by 0.3% quarter-on-quarter in the first quarter of 2026, reversing from a 1.9% expansion in the previous three-month period and coming in slightly above preliminary estimates of a 0.4% decline. This marked the first quarterly contraction since the fourth quarter of 2023, driven by declines in construction (-1.7% vs 1.3% in Q4 2025), trade-related services (-1.1% vs 1.9%), information and communications (-0.5% vs 2.6%), and financial and insurance activities (-1.9% vs 3.2%), alongside weaker manufacturing (0.0% vs 1.5%) and real estate activities (0.3% vs 1.6%). On the expenditure side, gross fixed capital formation declined (-4.4% vs 3.4%), while household consumption (1.0% vs 0.6%) and government spending (0.9% vs -0.3%) improved. Net external demand also weighed on growth, as exports (-0.1% vs 1.2%) declined while imports (0.3% vs -0.1%) rebounded. On an annual basis, GDP grew 2.3% in the first quarter of 2026, slowing from 3.3% in the previous period.

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.