Lithuania's economic growth accelerates in first quarter of 2016

Lithuanian GDP grew by 2.4 percent in the first quarter of 2016, compared to the same quarter in 2015, announced Statistics Lithuania on Friday.

According to the first estimate, seasonally adjusted GDP growth of the first quarter of 2016 was the fastest since the third quarter of 2014.

"In the first quarter of 2016, the positive change in GDP was mainly conditioned by whole trade and retail trade, repair of motor vehicles and motorcycles, transportation and storage, and manufacturing activities," Statistics Lithuania said in a press release.

Lithuanian economic growth continues to be supported by strong domestic consumption which is reflected by growth in retail trade and services, notes Darius Imbrasas, senior economist of the Bank of Lithuania.

However, the Lithuanian economy faces ongoing external challenges, he added.

"Russia's economic situation remains weak, and the country's economic prospects are pressured by low commodity prices," Imbrasas said.

Russia is Lithuania's largest single trading partner.

"However, it's worth emphasizing that the development of Lithuanian exports hasn't been disappointing," he said.

Lithuania's central bank expects the country's economy to grow by 2.6 percent this year. In 2015, Lithuania's GDP grew by 1.6 percent.