Economy of Lithuania

The main articles are:

• Lithuania
• World economy

GDP

Main item: GDP - Gross Domestic Product (GDP)

2023: GDP collapse on 2.1% in Q1

In the first quarter of 2023, compared to the last quarter of 2022, Lithuania's GDP fell by 2.1%. This is the sharpest quarterly drop in GDP since the beginning of the Covid-19 coronavirus pandemic.

2022: Industry's share of GDP - less than 20%

2021: Agriculture's share of GDP - less than 4%

2018: Tourism's share of GDP

Financial system

Inflation

2022

Inflation in November - 23.6%

Slowdown in consumer price growth in October to 22%

The consumer price indicator showed that price growth in October 2022 slowed down to 21.8% in Latvia, 22% in Lithuania and 22.4% in Estonia.

Inflation in July - 21.6%

Inflation in May - 18.5%

Annual inflation in Lithuania in May 2022 rose to 18.5%.

Key rate

National debt

2023: State debt - 40% of GDP

Largest companies in Lithuania

2020

2018

Energy supplies

Gas market in Lithuania

• Gas market in Lithuania

Lithuania is a member of the Three Seas Initiative, aimed at countering Russia.

Oil pipelines

Power

Main article: Power of Lithuania

Industry

2019: "Industry 4.0" in Lithuania: Why industrial giants rushed into this country

By June 2019, Lithuania became the leader in the EU in terms of industrial production growth. This fact is partly due to the fact that the country attracts large investors: ROL, AQ wiring systems, IKEA Industry Lithuania, System Air, Dovista A/S - only a few Scandinavian companies that decided to start a new business in Lithuania.

The whole world, especially developed European countries, is talking about the fourth industrial revolution. Lithuania is no exception, although many are surprised by the fact that the European Commission mentions this country as an example of Industry 4.0.

Lithuania not only introduces measures to digitalize production, but also is well versed in doing business. The government understands that Industry 4.0 is the first step towards a new level of industry. Lithuania ranks 14th out of 190 countries in the World Bank's ranking for ease of doing business and 13th out of 162 other countries according to the Fraser Institute's Economic Freedom Index. Over the past 8 years, 39 foreign industrial companies have opened representative offices in Lithuania, and 65% of manufactured goods are exported.

Giedrius Valuckas, Chairman of the Board of the Šiauliai Free Economic Zone (SEZ) in Lithuania believes that foreign investors are attracted by several factors - talents focused on investors, infrastructure and living conditions of world class, excellent value for money, business-friendly environment and financial incentives. The population of Lithuania is about 2.8 million people, of which 1.5 million are people of working age. According to the Cushman & Wakefield Industrial Risk Index, Lithuania is the second most attractive country in the world for industrial investment (the first place is taken China).

Scandinavian companies often prefer to deploy new businesses in small towns, where various companies are forced to collaborate more closely. Šiauliai is a small town located in the northern part of Lithuania, and although it has a population of only 100,000 thousand, the city is seen as a future industrial center. Therefore, the operators of the Šiauliai FEZ welcomed investors with many years of experience in developing production projects and using Industry 4.0 solutions.

One of the main advantages of the city of Šiauliai is its convenient geographical location: it is located near the sea and has access to two ports at once in Riga (Latvia) and in Klaipėda (Lithuania). In addition, Siauliai has its own airport - part of the Zokniai military airport, located next to the FEZ. Finally, another advantage of the Šiauliai FEZ is good relations with the municipality and its institutions.

In the Siauliai FEZ, it is still possible to rent an area of ​ ​ up to 90 hectares or a smaller land plot, depending on the needs of investors. FEZ can provide investors with up to 20 MW of electricity, as well as everything necessary for a quick start and further successful activity: asphalt roads, lighting, sewage and water supply systems.

In addition, the country has an extremely profitable tax policy - for the first 10 years, income tax for companies operating in the FEZ is 0%, and for the next 6 years only half of the usual tax rate. The real estate rate of 0% applies during the entire period of work in the FEZ. In addition, foreign investors positively assess the competence of Lithuanian employees and a business-friendly political environment.^[1]

Food industry

2021: Cheese production - 34.9 kg per capita

R&D

2020: R&D expenses - $851 million

Foreign trade

2024: Direct deliveries to Russia with indication in the documents of Kyrgyzstan

In April 2024, exports to Russia through third countries in Central Asia continue to remain at a record level. Kyrgyzstan is a key hub for transshipment, with exports from European countries never arriving in Bishkek. Kyrgyzstan is what is indicated in the bill, but these goods go directly to Russia.

2023

China lifts trade restrictions against Lithuania

In November 2023, it became known that China was lifting trade restrictions against Lithuania. The "economic coercion" regime, which was challenged in the WTO, including the exclusion of Lithuania "from the customs system so that no business can export products to China," has ceased, Lithuanian Foreign Minister Gabrielus Landsbergis said. Despite the fact that the blocking of goods has already been lifted, the business still fears to conduct trade with China, he said.

Continued trade with Russia through Central Asian countries

2022: China trade deficit

2021: China strikes Lithuania off its customs register for cooperating with Taiwan

In early December 2021, China deleted Lithuania from the customs register, Lithuania will no longer be able to issue its goods through Chinese customs.

Vilnius requested help from the European Union, consultations are underway with the European Commission on the EU's reaction to the decision of the Chinese authorities.

"Lithuania is excluded from the customs system, it seems that there is no such country in the Chinese customs system. This creates additional problems for exporters because they cannot send the remaining amount of cargo, "said the President of the Confederation of Lithuanian Industrialists Vidmantas Janulevicius.

Relations between the two countries are in crisis due to the opening of a representative office in Vilnius on November 18. Taiwan Beijing regarded as a violation of its sovereignty. In response, China recalled its ambassador to Lithuania and imposed a de facto ban on trade with the EU member state.

2019: Computer Device Exports

Tourism

2019: More than 15% of the population went on tourist trips. UK is the most popular country

2018: Tourism revenue

Labour market

2022: Proportion of workers aged 65 or over - above 10%

Salaries

2023: Minimum wage - $646

2018: Salaries of top officials in government management

2017: Average monthly salary

Unemployment

2023: Youth unemployment - 13.8%

2022: Unemployment rate - 5.8%

2020: Unemployment rate - 8.2%

Real estate

2023: Unsuccessful attempt to ban real estate sales to Russians

Parliament Lithuania in April 2023 banned Russians from purchasing real estate in the country. The decision was made against the background of the conflict on. To Ukraine

But Lithuanian President Gitanas Nauseda vetoed the law on national sanctions adopted by the Sejm, providing, in particular, a ban on Russians from purchasing real estate in Lithuania.

Agriculture

2019: Low use of pesticides in agriculture

Consumption

2023: Pork is the most consumed type of meat

2019

Pork is the most consumed type of meat

Beer consumption in liters per year per person

2018

Milk consumption in liters per year per person

Minimum age to purchase alcoholic beverages

See also

• Russian economy