Lithuania GDP Contracts for the First Time Since 2022

Lithuania’s economy shrank by 1.0% quarter-on-quarter in the third quarter of 2026, reversing a downwardly revised 1.4% expansion in the previous three-month period, according to preliminary estimates. This marked the first quarterly contraction since the fourth quarter of 2022, driven largely by weaker performances in construction, information and communications, as well as transportation and storage services. On a year-on-year basis, Lithuania’s GDP advanced by 1.8% in Q3 2026, slowing from 4.1% growth in the previous quarter and marking the weakest expansion since the decline in Q1 2023.

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.