Key developments and challenges

Lithuania recorded the EU’s second highest growth in 2011. The country benefited from good diversification in exports across markets and products. Relatively low household debt and a reviving labour market have supported private consumption, underpinning a balanced recovery.

A mid-sized, locally owned bank was closed in late-2011. This was due to an isolated case of fraud and the bank’s closure and safeguarding of deposits was handled well by the authorities. This incident has nevertheless prompted greater attention to bank governance.

The government has adopted an ambitious programme on raising skills and competitiveness. Among other measures, the programme aims to make improvements in the governance and transparency of state-owned enterprises.