In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response
For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
As a member of the EU since 2004, Lithuania has experienced significant growth coupled with the rapid modernisation of its economy, becoming a member of OECD in 2018. The country experienced the fastest recovery in Europe from the 2009 financial crisis, partly fuelled by a well-performing banking system and a diversified industrial sector; and it was the only euro area Member State that did not see real GDP decline in the first quarter of 2020. In fact, Lithuania resisted well to the COVID-19-induced crisis, with GDP contracting by only 0.9% in 2020, followed by a rebound of 4.8% in 2021 when growth was fuelled by private demand and positive performance of the real estate and manufacturing sectors. Economic activity is forecast to decelerate over the forecast horizon, growing by 4.1% this year and 3.1% in 2023 (IMF), due to persistent uncertainty amid the ongoing pandemic.
Macroeconomic indicators are generally positive, having recorded budget surpluses in recent years. Nevertheless, sizeable stimulus packages implemented to contain the effects of the pandemic drove the budget in negative territory, at -4.8% in 2021. Despite the economic recovery, the IMF expects the budget to be negative in 2022 and 2023, by 2.6% and 1.2%, respectively. Conversely, the debt-to-GDP ratio increased to 47.4% in 2021 (from a pre-pandemic level of 35.9%), although it should follow a downward trend this year (45.5%) and the next (43.7% - IMF). Consumer price inflation surged in Lithuania towards the end of 2021, mostly driven by a spike in energy prices, the overall rate stood at 3%. Services prices are expected to increase at the fastest pace in more than a decade as a consequence of rising wages and rebounding domestic demand: the EU commission forecasts the rate to increase to 6.7% in 2022 (whereas the IMF expects it to be just above 2.8%), before moderating to 2.7% in 2023.
The Lithuanian government introduced a number of measures to protect employment and provide additional support for job seekers during the COVID-19 crisis; resulting in an unemployment rate of 6.5% in 2021 (from 8.5% one year earlier). The rebound in economic activity should gradually bring the unemployment rate down to 6% by 2023. Net migration was positive for the first time in 2019, and again in 2020, which helped to ease labour shortages (the country has one of the lowest population growth rates in the world), but it turned negative again in 2021. According to the figures released by Statistics Lithuania, around 585,000 people were at risk of poverty, with 5.1% of the population living in absolute poverty in 2020 (latest data available).
Main Indicators | 2020 | 2021 | 2022 | 2023 | 2024 |
---|---|---|---|---|---|
GDP (billions USD) | 56.50 | 65.55 | 68.03 | 72.63 | 78.00 |
GDP (Constant Prices, Annual % Change) | -0.1 | 5.0 | 1.8 | 1.1 | 2.8 |
GDP per Capita (USD) | 20,216 | 23,386 | 24,032 | 25,656 | 27,555 |
General Government Balance (in % of GDP) | -6.6 | -1.2 | -2.1 | -1.3 | -1.2 |
General Government Gross Debt (in % of GDP) | 46.6 | 44.7 | 42.2 | 39.5 | 37.9 |
Inflation Rate (%) | 1.1 | 4.6 | 17.6 | 8.4 | 3.2 |
Unemployment Rate (% of the Labour Force) | 8.5 | 7.1 | 7.3 | 7.0 | 6.5 |
Current Account (billions USD) | 4.15 | 0.93 | -1.09 | -1.49 | -1.24 |
Current Account (in % of GDP) | 7.3 | 1.4 | -1.6 | -2.1 | -1.6 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Agriculture contributes 3.3% to the GDP and employs 6.4% of the workforce (World Bank, latest data available). Lithuania's main agricultural products are wheat, wood, barley, potatoes, sugar beets, wine and meat (beef, mutton and pork). Arable land and permanent crops cover 2 million hectares, more than one-third of the country’s territory. According to figures from the national statistical office, in 2021 the total grain crops production stood at 5,621.3 thousand tonnes, down by 18.9% compared to the previous year; whereas the gross agricultural production reached EUR 3.2 billion (+11.7% y-o-y).
The industrial sector accounts for 24.9% of GDP, employing around 25.7% of the active population. 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 World Bank estimates that the manufacturing sector alone contributes to 15.7% of the country’s GDP.
Lastly, the services sector contributes 61.5% to the GDP and employs more than two-thirds of the active population (67.9%). The information technology and communications sectors are the most important contributors to the GDP. In recent years, tourism has been one of the fastest-growing sectors of the country's economy; however, data from the national tourism development agency shows that the total number of nights spent in tourism accommodations in 2021 was still 39.4% below the pre-pandemic level (although it was up by 15.1% compared to 2020). Lithuanian banking sector consists of 17 banks, eleven of which hold a banking or specialized banking license, and six banks operate as branches of foreign banks (European Banking Federation).
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 6.4 | 25.7 | 67.9 |
Value Added (in % of GDP) | 3.3 | 25.3 | 60.7 |
Value Added (Annual % Change) | -11.7 | 8.6 | 5.8 |
Source: World Bank - Latest available data.
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Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Euro (EUR) - Average Annual Exchange Rate For 1 MUR | 0.03 | 0.03 | 0.02 | 0.03 | 0.02 |
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024
See the country risk analysis provided by Coface.
Lithuania is a very open economy, with foreign trade representing 138.5% of GDP (World Bank, latest data available). According to Statistics Lithuania, in 2021 the country’s main exports were in the chemical and related industries (14.9%), machinery and electrical equipment (13.5%), and mineral products (10%). Lithuania mostly imported machinery and mechanical equipment (17.8%), mineral products (17.3%), and chemical and related products (12.2%).
The European Union is Lithuania’s major trading partner. Its exports are mostly destined to Russia (13.4%), Latvia (9.2%), Germany (8.1%) and Poland (6.4%). The main origins of Lithuania’s imports were Poland (13%), Germany (12.9%), Russia (8.8%), Latvia (7.8%) and the Netherlands (5.5%).
The country's merchandise trade balance has historically been in deficit, which can largely be explained by the country's energy imports and, particularly, by the large amount of gas it imports from Russia. In 2021, Lithuania exported goods worth EUR 34.5 billion, with imports amounting to EUR 37.5 billion. Compared to a year before, exports in 2021 increased by 20.3% and imports by 28.5%. However, the balance of services is generally positive: in the first three quarters of 2021 exports stood at EUR 3.2 billion (+17.8%) as imports grew at a faster pace, to EUR 2 billion (+39.1% y-o-y – Statistics Lithuania).
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 32,258 | 36,502 | 35,759 | 33,140 | 44,585 |
Exports of Goods (million USD) | 29,901 | 33,337 | 33,151 | 32,767 | 40,828 |
Imports of Services (million USD) | 5,871 | 7,050 | 7,692 | 6,504 | 9,061 |
Exports of Services (million USD) | 9,408 | 11,330 | 13,191 | 12,253 | 15,214 |
Imports of Goods and Services (Annual % Change) | 11.1 | 6.0 | 6.0 | -4.5 | 19.9 |
Exports of Goods and Services (Annual % Change) | 13.5 | 6.8 | 10.1 | 0.4 | 17.0 |
Imports of Goods and Services (in % of GDP) | 71.3 | 73.4 | 72.0 | 63.9 | 76.0 |
Exports of Goods and Services (in % of GDP) | 73.6 | 75.2 | 77.3 | 73.3 | 80.5 |
Trade Balance (million USD) | -2,307 | -3,367 | -2,634 | -451 | -3,414 |
Trade Balance (Including Service) (million USD) | 1,130 | 959 | 2,904 | 5,307 | 3,020 |
Foreign Trade (in % of GDP) | 144.9 | 148.6 | 149.3 | 137.2 | 156.5 |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
Main Customers (% of Exports) |
2021 |
---|---|
Russia | 10.9% |
Latvia | 9.2% |
Germany | 8.2% |
Poland | 7.9% |
United States | 6.3% |
See More Countries | 57.5% |
Main Suppliers (% of Imports) |
2021 |
---|---|
Germany | 12.8% |
Poland | 12.1% |
Russia | 11.9% |
Latvia | 8.3% |
Netherlands | 5.3% |
See More Countries | 49.6% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows.
2.0 bn USD of services exported in 2020 | |
---|---|
49.17% | |
29.76% | |
Personal travelPersonal travel | 23.53% |
OtherOther | 23.53% |
Business travelBusiness travel | 6.22% |
OtherOther | 6.22% |
10.93% | |
4.86% | |
Telecommunications servicesTelecommunications services | 4.86% |
2.48% | |
2.28% | |
0.43% | |
Franchises and similar rightsFranchises and similar rights | 0.04% |
0.09% |
1.4 bn USD of services imported in 2020 | |
---|---|
38.57% | |
Personal travelPersonal travel | 31.35% |
OtherOther | 31.35% |
Business travelBusiness travel | 7.22% |
OtherOther | 7.22% |
27.79% | |
Information servicesInformation services | 3.29% |
Other information provision...Other information provision services | 3.22% |
News agency servicesNews agency services | 0.07% |
7.17% | |
Telecommunications servicesTelecommunications services | 7.17% |
5.70% | |
5.60% | |
Construction in the compiling...Construction in the compiling economy | 5.60% |
5.53% | |
Franchises and similar rightsFranchises and similar rights | 1.14% |
3.54% | |
3.19% | |
Freight insuranceFreight insurance | 1.66% |
ReinsuranceReinsurance | 0.86% |
Other direct insuranceOther direct insurance | 0.58% |
Life insurance and pension fundingLife insurance and pension funding | 0.04% |
2.91% |
Source: United Nations Statistics Division, Latest Available Data
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the COVID-19 disease in Lithuania, please visit the official portal of the Lithuanian government KoronaStop.lt.
For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.
To find out about the latest public health situation in Lithuania and the current sanitary measures in vigour, please consult the portal KoronaStop.lt including the up-to-date information on the containment measures put in place. Refer to the website of the Ministry of Health for public health recommendations, info on the protective measures, and news and updates on the preventive actions (in Lithuanian).
The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.
The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.
Following the measures taken by the European Commission, an export license is required to export personal protective equipment outside of the European Union.
For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Lithuania on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.
To know about the economic measures taken to address the impact of the COVID-19 pandemic on the national economy, please visit the official portal of the Lithuanian government. Additional information can be found on the website of the Ministry of the Economy and Innovation.
The information on the EU’s economic response to COVID-19 and the actions to minimise the fallout on the EU member states’ economies of the COVID-19 outbreak is available on the website of the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Lithuanian government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Lithuania in the IMF’s Policy Tracker platform.
For the information on the local business support scheme and taxation measures established by the Lithuanian government to help businesses to deal with the economic impacts of the COVID-19 epidemic on their activity, please consult the dedicated page on the website of the Lithuanian Ministry of the Economy and Innovation. Further info concerning subsidies to employers and employees can be accessed on the official portal of the Lithuanian government.
The national portal Enterprise Lithuania provides relevant updates and insights for businesses.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19.
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Latest Update: March 2023