Lithuania enjoyed healthy economic growth last year, its strongest performance since 1997.

According to the preliminary calculations of the National Statistics department, the economy grew 5.7% in 2001, boosted by industry, construction and trade in the last three months of the year.

The fourth quarter growth was 7.9% on an annualised basis, compared to 3.9% a year ago.

"We see a gradual improvement of domestic demand (and) the export sector despite cooling European markets. These are the main factors why we saw very good development through 2001," said Veikko Maripuu, head of research at Suprema.

The government predicts a slower growth of 4.0% in 2002, caused by an economic downturn in European Union, the main Lithuanian trade partner and investor.

Although these economic estimates match expectations of the International Monetary Fund, some local analysts say better growth could be secured this year if exporters offset weaker exports to Europe with sales to Russia.

The biggest annual rise in Lithuania was achieved in 1997, when the economy grew 7.3%.

The largest quarterly growth of 10% was recorded in the second quarter of 1998, but the annual figures for that year were much lower, due to the financial crisis in Russia.