Lithuania overview

Cityscape

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 paid €105,000 for activities in Armenia, Georgia and Moldova.

The EBRD’s latest strategy for Lithuania was adopted on 10 February 2016.

EBRD forecast for Lithuania’s real GDP growth in 2019 3.1%

EBRD forecast for Lithuania’s real GDP growth in 2020 2.5%

Economic growth in Lithuania in 2018 reached 3.4 per cent and was in line with our expectations from November 2018. Similar to its regional peers, GDP growth was driven by investment and household consumption. Besides, Lithuania was the only CEB country that saw positive net exports last year amid strong investment-driven imports.
 
As Lithuania closed its output gap years ago, economic expansion is expected to moderate as capacity constraints, including labour, start to bite. The ongoing fight for employees between companies induces rising wages and household consumption. Weaker demand from the eurozone will weigh on exports, but the depreciated euro should help exporting companies to reach countries outside the common currency area.
 
As a result, GDP growth rates in 2019 and 2020 are expected to moderate to 3.1 per cent and 2.5 per cent, respectively.
 

Lithuania in the EBRD’s 2018-19 Transition Report

Lithuania in the latest beeps survey