In Lithuania we focus on:
Supporting investments in renewable energy and energy efficiency. The EBRD continues to focus on promoting and financing new renewable energy generation and improving energy efficiency particularly in municipal and industrial sectors.
Improving the competitiveness of the export sector. The EBRD is promoting cross-border investments by Lithuanian companies elsewhere in our region and supports export-oriented enterprises with a focus on investments in advanced technologies. Investments in regional equity or mezzanine funds are also being considered.
Support strengthening of local banks. The EBRD is supporting the local banking sector, focussing on strengthening sector stability and promoting consolidation.
Policy dialogue. We are conducting policy dialogue with the Lithuanian authorities to support improvements in corporate governance in the financial and public sectors.
As well as being a country where the EBRD works, Lithuania is also an EBRD donor. Lithuania remains a supporter of the Eastern Europe Energy Efficiency and Environment Partnership Fund, having contributed €134,322 for activitie in Armenia, Georgia, Moldova and Ukraine.
The EBRD’s latest strategy for Lithuania was adopted on 15 September 2021
EBRD forecast for Lithuania’s real GDP growth in 2022 2.0%
EBRD forecast for Lithuania’s real GDP growth in 2023 1.5%
Following a strong rebound of economic activity in 2021, growth slowed down to 3.2 per cent yearon-year in the first half of 2022.
Household consumption was hit by eroding real disposable incomes amid soaring inflation, though unemployment remains low at 5.2 per cent in the second quarter of 2022. Inflation reached 21.1 per cent in August 2022, largely triggered by sharp rises in housing, food, energy and transport prices. In order to combat the effects of these price hikes, especially heating, the government approved a €2.26 billion package to alleviate some of the inflation burden for households. Amid reduced exports to Belarus, Russia and Ukraine, and weakening demand in the EU, GDP growth in Lithuania is expected to slow down to 2.0 per cent and 1.5 per cent in 2022 and 2023, respectively. Trade tensions with China are expected to negatively affect economic activity in Lithuania in the short term, but investments under the RRF will positively stimulate GDP growth.