Revised GDP

Statistics Lithuania, based on the revised data of IV quarter 2008 and having estimated the value added by a more detailed list of economic activities, revised the second gross domestic product (GDP) estimate for IV quarter 2008. According to the revised data, in IV quarter 2008, GDP at current prices made LTL 28578.8 million and against IV quarter 2007 decreased by 2.2 per cent. The previously published second GDP estimate made LTL 28600.3 million and its decrease made up 2.0 per cent. The volume of annual GDP at current prices was also revised and made LTL 111.50 billion; annual GDP growth rate made up 3.0 per cent.

In IV quarter 2008, a 1.6 per cent decrease in final consumption expenditure for the first time after Russian crisis had a negative impact on the GDP change, when analyzing it applying the expenditure approach. This negative result was mostly influenced by the decrease in final consumption expenditure of households (2.9 per cent), non-profit institutions serving households (13.8 per cent). The general government consumption expenditure increased by 2.9 per cent.

However, the strongest negative impact on the GDP expenditure change was made by the decline in volume of gross fixed capital formation which had been observed for three quarters in a row. In October-December 2008, expenditure on gross fixed capital formation decreased by 17.9 per cent due to rapid slowdown in construction and rapid decrease in investment for machinery and equipment and vehicles.

Consumption and expenditure on capital formation did not induce the growth in imports anymore. It was the first time over eight years when imports of goods and services decreased by 1.1 per cent. Over the year, the growth rate of imports of goods and services remained stable and in IV quarter 2008 increased by 10.2 per cent. This result determined the lowest deficit level of current account (3.8 per cent) over the previous five years. The strongest impact on the growth of import was made by sales of mineral products.