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 2018 3.2%
EBRD forecast for Lithuania’s real GDP growth in 2019 2.8%
GDP growth in Lithuania reached 3.8 per cent in 2017, the strongest rate since 2012 but slightly below its Baltic neighbours. Robust private consumption was accompanied by recovering investment as the key drivers of growth last year. Investment grew by 7.3 per cent, largely supported by private sector purchases of fixed assets. Public sector investment is set to recover in line with the anticipated acceleration in EU funds absorption in 2018-19.
Following two consecutive years of contraction, export volumes have finally recovered, rising by 13.6 per cent in 2017. However, we downgrade our GDP growth projections to 3.2 per cent this year. In 2019 we expect a further slowdown to 2.8 per cent, as the strong investment-led imports will likely negatively contribute to GDP growth and domestic demand will ease.