Lithuania Economy Accelerates in Q2

Lithuania’s economy expanded by 1.7% quarter-on-quarter in the second quarter of 2026, in line with preliminary estimates, rebounding from a 0.1% contraction in the previous quarter. The recovery was driven by stronger activity across key sectors, particularly construction (6.1% vs -1.9% in Q1), manufacturing (3.6% vs -0.2%), and trade-related services (3.3% vs -1.4%). Financial and insurance activities also accelerated (2.4% vs 1.2%), while real estate activity increased 1.7%, compared with 0.3% in Q1. Information and communications activity was broadly flat (0.0% vs -0.4%), while agriculture, forestry and fishing contracted 0.6% after expanding 5.2% previously. Year-on-year, GDP growth accelerated to 4.1% in Q2 from 2.5% in Q1, confirming flash estimates and marking the fastest pace of growth since the fourth quarter of 2024.

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.