Currency | Euro (EUR, €) |
---|---|
Calendar year | |
Trade organisations | EU, WTO, OECD |
Country group |
|
Statistics | |
Population | 2,886,515 (2024)[4] |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
Population below poverty line | |
35.4 medium (2019, Eurostat)[9] | |
| |
Labour force | |
Labour force by occupation |
|
Unemployment | |
Average gross salary | €2,110 per month (2023 Q4)[15] |
€1,304 per month (2023 Q4)[15] | |
Main industries | Petroleum refining, food processing, energy supplies, chemicals, furniture, wood products, textile and clothing[16] |
External | |
Exports | €44.31 billion (2022)[17] |
Export goods | Mineral products, furniture, vehicles and their parts, plastics, machinery, electrical machinery and equipment, wood[17] |
Main export partners |
|
Imports | €52.54 billion (2022)[17] |
Import goods | Mineral products, vehicles and their parts, machinery, electrical machinery and equipment, plastics, pharmaceutical products, iron and steel[17] |
Main import partners |
|
FDI stock | |
$364 million (2017 est.)[3] | |
Gross external debt | $34.48 billion (31 March 2016 est.)[3] |
Public finances | |
Revenues | 35.2% of GDP (2019)[19] |
Expenses | 34.9% of GDP (2019)[19] |
Economic aid |
|
€3.9 billion (October 2018)[26] | |
[27][28][29][30][31][32][33] All values, unless otherwise stated, are in US dollars. |
The economy of Lithuania is the largest economy among the three Baltic states.[34][35] Lithuania is a member of the European Union and belongs to the group of very high human development countries and is a member of the WTO and OECD.
In the 1990s, Lithuania rapidly moved from a centrally planned economy to a market economy, implementing numerous liberal reforms. It enjoyed high growth rates after joining the European Union along with the other Baltic states, leading to the notion of a Baltic Tiger. Lithuania's economy (GDP) grew more than 500 percent since regaining independence in 1990. The Baltic states have a combined workforce of 3.3 million people, with 1.5 million of these working people living in Lithuania.
GDP growth reached its peak in 2008, and was approaching the same levels again in 2018.[36] Similar to the other Baltic States, the Lithuanian economy suffered a deep recession in 2009, with GDP falling by almost 15%. After this severe recession, the country's economy started to show signs of recovery already in the 3rd quarter of 2009. It returned to growth in 2010, with a positive 1.3 outcome and with 6.6 per cent growth during the first half of 2011. The country is one of the fastest growing economies in the EU.[37] GDP growth had resumed in 2010, albeit at a slower pace than before the crisis.[38][39] The success of the crisis taming is attributed to the austerity policy of the Lithuanian government.[40]
Lithuania has a sound fiscal position. The 2017 budget resulted in a 0.5% surplus, with the gross debt stabilising at around 40% of the GDP. The budget remained positive in 2017, and was expected to continue to do so in 2018.[41]
Lithuania is ranked 11th in the world in the Ease of Doing Business Index prepared by the World Bank Group,[42] 16th out of 178 countries in the Index of Economic Freedom, measured by The Heritage Foundation[43] and 8th out of 165 countries in the Economic Freedom of the World 2021[44] by Fraser Institute. On average, more than 95% of all foreign direct investment in Lithuania comes from European Union countries. Sweden is historically the largest investor with 20% – 30% of all FDI in Lithuania.[45] FDI into Lithuania spiked in 2017, reaching its highest ever recorded number of greenfield investment projects. In 2017, Lithuania was the third country, after the Republic of Ireland and Singapore by the average job value of investment projects.[46]
Based on OECD data, Lithuania is among the top 5 countries in the world by postsecondary (tertiary) education attainment.[47] This educated workforce attracted investments, especially in the ICT sector during the past years. The Lithuanian government and the Bank of Lithuania simplified procedures for obtaining licences for the activities of e-money and payment institutions.[48] positioning the country as one of the most attractive for the financial technology initiatives in the EU.
Agriculture contributes 3.3% to the GDP and employs 9.1% of the active workforce (CIA World Factbook 2017 estimates). Lithuania's main agricultural products are wheat, wood, barley, potatoes, sugar beets, wine and meat (beef, mutton and pork). The main industrial sectors are electronics, chemical products, machine tools, metal processing, construction material, household appliances, food processing, light industry (including textile), clothing and furniture. The country is also developing oil refineries and shipyards. The industrial sector contributes 28.5% to the GDP employing around 25% of the active population. Lastly, the services sector contributes 68.3% to the GDP and employs 65.8% of the active population. The information technology and communications sectors are the most important contributors to the GDP.
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But Mr Kubilius, speaking in Brussels ahead of an EU summit, said his government would press ahead with its austerity programme and would not request a relaxation of the terms for joining the euro area that are set out under EU treaty law.
Lithuania's fiscal position is sound. After revenues fell sharply in the wake of the 2008 crisis, the government started consolidating public finances on the spending side by reducing the wage bill, lowering social spending and cutting infrastructure investment. The 2016 budget resulted in a 0.3% surplus, the first for more than a decade (Figure 13). As a result, gross debt is now stabilising at around 50% of GDP (OECD National Accounts definition), which is sustainable under various simulations (Fournier and Bétin, forthcoming). The budget remained positive in 2017 and is expected so in 2018.
Ireland continues to lead the world for attracting high-value investment, generating substantial inward investment with strengths in key high-value sectors such as ICT, financial and business services and life sciences. But Singapore is now a close second, with Lithuania and Switzerland right behind.
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