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
Lithuania 's policy response to the coronavirus crisis
The EBRD is monitoring Lithuania 's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
EBRD forecast for Lithuania’s real GDP growth in 2022 2.0%
EBRD forecast for Lithuania’s real GDP growth in 2023 3.0%
A strong economic recovery of 5 per cent in 2021 was supported by the growth of household consumption and a noteworthy increase in the retail and services sectors, as well as in manufacturing. Employment growth was also strong, reaching pre-pandemic levels. The inflow of Ukrainian refugees in 2022 could partially alleviate shortages in the labour force and limit the substantial growth seen last year in wage and salary costs (10.6 per cent growth in the fourth quarter of 2021 year-on-year). Inflation reached 15.6 per cent in March 2022 and, with higher energy and food prices on the short-term horizon, is set to grow further throughout the year. The government’s support package to mitigate the influence of rising prices includes tax cuts, compensation for higher energy prices and support for businesses.
The cost of these measures amounts to around 4 per cent of GDP. Following the decision from April 2022 to stop gas imports from Russia, Lithuania intends to increase its gas imports through the Klaipeda LNG terminal. In addition to reduced exports to China after a bilateral dispute, the war on Ukraine and related sanctions on Russia and Belarus are continuing to negatively affect Lithuania’s exports of transport services and overall exports to Russia (13 per cent of its total non-EU exports pre-war). Given the overall uncertainties, higher energy and food prices, as well as continued trade disruptions, GDP growth is anticipated to reach 2.0 per cent this year, before recovering to 3.0 per cent in 2023.