Economy of Lithuania

Economy of Lithuania
	Vilnius CBD
Currency	Euro (EUR, €)
Fiscal year	Calendar year
Trade organisations	EU, WTO, OECD
Country group	Developed/Advanced; High-income economy; Largest Baltic economy;
Statistics
Population	2,886,515 (2024)
GDP	$78.346 billion (nominal, 2023 est.); $137.389 billion (PPP, 2023 est.);
GDP rank	78th (nominal, 2023); 88th (PPP, 2023);
GDP growth	4.94% (2021); 1.84% (2022e); 2.59% (2023e);
GDP per capita	$28,094 (nominal, 2023 est.); $49,266 (PPP, 2023 est.);
GDP per capita rank	40th (nominal, 2023); 39th (PPP, 2023);
GDP by sector	agriculture: 3.3%; industry: 28.5%; services: 68.3%; (2017);
Inflation (CPI)	1.3% (2020 est.); 2.2% (2019); 2.5% (2018);
Population below poverty line	20.9% – monthly income below €510 (2022); 26.3% at risk of poverty or social exclusion (AROPE, 2019);
Gini coefficient	35.4 medium (2019, Eurostat)
Human Development Index	0.875 very high (2021) (35th); 0.800 very high IHDI (31st) (2021);
Labour force	1,439,700 (2019); 77.8% employment rate (Target: 72.8%; 2018);
Labour force by occupation	agriculture: 9.1%; industry: 25.2%; services: 65.8%; (2015 est.);
Unemployment	6.4% (April 2022); 23.1% youth unemployment (15 to 24 year-olds; July 2020);
Average gross salary	€1,989 per month (2023 Q3)
Average net salary	€1,235 per month (2023 Q3)
Main industries	Petroleum refining, food processing, energy supplies, chemicals, furniture, wood products, textile and clothing
External
Exports	€44.31 billion (2022)
Export goods	Mineral products, furniture, vehicles and their parts, plastics, machinery, electrical machinery and equipment, wood
Main export partners	Latvia 12.86%; Poland 9.04%; Germany 7.93%; Russia 6.16%; Estonia 5.72%; Netherlands 5.44%; United States 5.28%; Sweden 4.11%; (2022);
Imports	€52.54 billion (2022)
Import goods	Mineral products, vehicles and their parts, machinery, electrical machinery and equipment, plastics, pharmaceutical products, iron and steel
Main import partners	Poland 11.67%; Germany 11.62%; Latvia 7.87%; United States 7.56%; Sweden 5.26%; Russia 4.93%; Norway 4.84%; Netherlands 4.5%; Saudi Arabia 4.15%; (2022);
FDI stock	€29.74 billion (31 December 2022); Abroad: €10.58 billion (31 December 2022);
Current account	$364 million (2017 est.)
Gross external debt	$34.48 billion (31 March 2016 est.)
Public finances
Government debt	36.3% of GDP (2019); €17.524 billion (2019);
Budget balance	€129 million surplus (2019) +0.3% of GDP (2019); ;
Revenues	35.2% of GDP (2019)
Expenses	34.9% of GDP (2019)
Economic aid	€6.8 billion from European Structural and Investment Funds (2007–2013); €8.39 billion from European Structural and Investment Funds (2014–2020);
Credit rating	Standard & Poor's:; A- (Domestic); A- (Foreign); AAA (T&C Assessment); Outlook: Stable; Moody's:; A3 (long-term); (P)P-2 (short-term); Outlook: Stable; Fitch:; A- (long-term); F1 (short-term); Outlook: Positive; Scope:; A (long-term rating); Stable (long-term Outlook); S-1 (short-term rating);
Foreign reserves	€3.9 billion (October 2018)
	; All values, unless otherwise stated, are in US dollars.

The economy of Lithuania is the largest economy among the three Baltic states. 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. 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. GDP growth had resumed in 2010, albeit at a slower pace than before the crisis. The success of the crisis taming is attributed to the austerity policy of the Lithuanian government.

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.

Lithuania is ranked 11th in the world in the Ease of Doing Business Index prepared by the World Bank Group, 16th out of 178 countries in the Index of Economic Freedom, measured by The Heritage Foundation and 8th out of 165 countries in the Economic Freedom of the World 2021 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. 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.

Based on OECD data, Lithuania is among the top 5 countries in the world by postsecondary (tertiary) education attainment. 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. positioning the country as one of the most attractive for the financial technology initiatives in the EU.

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