The paper analyses the relationship of personal consumption and domestic investment in Lithuania. A dynamic and structural analysis of GDP and personal consumption expenses is conducted. The relationship between personal consumption expenses and determining factors, i.e. disposable income, the inflation rate, the consumer confidence index, is established. The paper also analyses which part of expenses is allocated for personal consumption and which for saving. The paper estimates the saving rate and the relationship between personal consumption expenses per capita and the saving rate. Having established that economic growth is related to the saving rate and domestic investment, a correlation regression analysis of household saving and domestic investment per capita is conducted
