Drought Caused Lithuania’s First Economic Drop in Eight Years
(Bloomberg) -- Lithuania’s economy contracted for the first time in eight years on quarterly basis as a severe drought hurt the harvest.
A heatwave that swept across Europe this summer damaged Lithuanian grain production, prompting authorities to declare a state of national disaster. With crop yields forecast to be about a quarter lower from last year, that’s “negatively impacting economic growth,” central bank Economist Darius Imbrasas said in emailed statement on Tuesday.
“The poor harvest and slower growth in the export sector slowed the pace of expansion in the Lithuanian economy,” Imbrasas said. “This undesirable effect was partially offset by more active retail trade.”
©2018 Bloomberg L.P.