The data on the Lithuanian economy in 2021 summarised by Statistics Lithuania showed that the gross domestic product (GDP) of the Baltic country grew by 5.1%, while the average inflation was fast, increasing prices by 4.6%, Lithuanian public broadcaster LRT and journalist Gabrielė Sagaitytė report.
Lithuania’s GDP in 2021 was 55.4 billion euros. It increased 5.1 % from the year 2020. Among sectors that grew most last year were retail and services (2.6 %) and manufacturing (2.1 %). Final taxes increased by 0.5 % in 2021.
The largest production increase was in the sectors of chemical products (45.6 %), motor vehicles and trailers (39.9 %), other vehicles and equipment (34.9 %), metals (28.9 %), as well as computers, electronics, and optical products (28.2 %).
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High inflation affected buying power
At 10.6 %, the annual inflation rate recorded in December 2021 was the highest in the last five years.
High inflation was driven by 24.6 % price hikes of housing-related goods and services, including water, electricity, gas, and other fuels.
Last year, prices of transport goods and services grew by 17.8 %, as well as by 10.4 % for food and non-alcoholic drinks.
In 2021, the average annual inflation rate, based on the harmonised consumer price index, was 2.9 % in the EU, compared to 4.6 % in Lithuania.
Rapid wage growth driven by IT and financial sectors
Last year, the average monthly wage before tax increased by almost 10 % to 1,568 euros in Lithuania. The average wage after tax was 995.3 euros.
Real wages adjusted to inflation increased by 4.1 % in 2021.
The highest net wages were earned by workers in information and communication sectors (around 1,721 euros), financial and insurance activities (around 1,612), and professional, scientific, and technical activities (around 1,230 euros).
The median after-tax wage was 804 euros, i.e., half the country’s workforce earned 804 euros or less.
The article originally appeared on LRT English: https://www.lrt.lt/en/news-in-english/19/1603659/growth-and-inflation-lithuanian-economy-in-2021
Lithuanian economy grew by 5.1% in 2021, according to official statistics
