Gross Domestic Product has decreased by 0.6% in 9 months of 2008

09.12.2008

Compared to the corresponding period of previous year, gross domestic product (GDP) in 9 months of 2008 has decreased by 0.6%, according to the Central Statistical Bureau.

In the 3rd quarter of 2008, compared to the same period of 2007, GDP has dropped by 4.6% (seasonally adjusted GDP has decreased by 4.7%).

Production aspect

Changes in the key sectors in the 3rd quarter of 2008*(at constant prices, % of the corresponding quarter of the previous year)

The decrease in GDP was due to the drop in the following activities: trade (share in GDP structure – 18.6%) - by 8.6%, transport and communications (12.5%) – by 0.9%, manufacturing (10.1%) – by 8.9% and construction (9.9%) – by 7.4%. Large volume decrease was also observed in financial intermediation (5.5%) – by 10.9%.

Retail trade

Transport and communications

Manufacturing

Construction

 

Changes of GDP in the 3rd quarter of 2008 by kind of economic activity (at constant prices, % of the corresponding quarter of the previous year)

A Agriculture, hunting and forestry;
B Fishing;
C Mining and quarrying;
D Manufacturing;
E Electricity, gas and water supply;
F Construction;
G Trade;
H Hotels and restaurants;
I Transport and communications;
J Finances;
K Business services;
L Public administration and defence; compulsory social security;
M Education;
N Health and social work;
O Other community, social and personal service activities


Expenditure approach

Increase of gross domestic product by major expenditure items

at current prices, % of the corresponding quarter of the previous year

at constant prices, % of the corresponding quarter of the previous year

Compared to the 3rd quarter of 2007 (at current prices), in the 3rd quarter of 2008 main groups of private final consumption were: house maintenance, water and energy (share in the structure of private final consumption – 24.8%) increased by 2.2%, but expenditure on food (20.6%) decreased by 1.4%, on transport (12.5%) – by 0.7%, on clothing and footwear (7.3%) – by 9.4%.

Decrease in private final consumption at constant prices was caused by price drop, but gross capital formation was influencedby decrease of non-financial investments by 7.4%. Total growth of export of goods and services was influenced by increase of goods export by 3.1% (constituting 66.6% of total export) and decrease of services exports by 0.2%. Total volume of imports of goods and services has reduced, what may be explained with the decrease of imports of goods by 12.5% (constituting 82.1% of total imports), nevertheless, the imports of services has grown by 2.8 %.

Changes of Gross Domestic Product in the Baltic Countries (at constant prices, % of the corresponding period of the previous year)

Lithuania on the 3rd quarter of 2008 – secondary estimate.

* Changes in calculations of constant prices

Together with announcement of GDP results of 3rd quarter of 2008, the CSB starts chain index use in determination of GDP and its components’ change rate.

Changes in methodology were applied due to European Parliament and Council Regulation (EC) No. 1392/2007, which amends Council Regulation (EC) No.2223/96 regarding transmission of national account data which requires calculation of national account data in prices of previous year and use of chain index in calculations of constant prices. Therefore during 2008 European Union member states are introducing this method as it will improve international comparability of GDP and its components.

Chain index determines that previous calendar year is used as calculation basis, therefore, quality of volume rate calculation improves as recent price and economics structure changes are taken into account.

For calculations in prices of previous year the CSB uses “average annual method”, i.e. the current quarter is calculated in average prices of previous year.

Prepared by National Accounts Section
Tel. +371 67366671
Alla Vanaga