Lithuania's economy rebounded in the the third quarter, technically lifting it out of recession, although activity remains well below year-ago levels, official data showed Tuesday.Statistics Lithuania's preliminary estimate for a 6 percent increase against the second quarter beat most analysts' expectations.
"This is a better result than anyone expected and could be a sign of economy stabilization. Market expectations now are slightly better, and we also see exports are getting back on the track," said Vilija Tauraite, a financial analyst at SEB, a Swedish-owned bank, in Vilnius.
Third quarter activity was robust due to gains in the agricultural sector, Statistics Lithuania said.
However, the Baltic state is still suffering the consequences of its exposure to the financial crisis. Gross domestic product was down 14.3 percent on the year due to a drop in the energy, construction and transportation sectors, Statistics Lithuania said
Lithuania had one of the poorest performing economies in the 27-member European Union in the second quarter, with GDP collapsing 19.5 percent on an annual basis. Only neighbor Latvia, whose economy contracted 19.6 percent, was worse.
Estonia, the third Baltic state, posted a fall in GDP of 16.6 percent in the second quarter.
Estonia and Latvia have yet to release third quarter statistics.
Together, the three Baltic countries have the most troubled economies in the EU after being among the most dynamic when they joined the bloc in 2004.
Lithuania's GDP is expected to decrease by some 20 percent this year.
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