Lithuania overview

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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.

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.

Learn more

EBRD forecast for Lithuania’s real GDP growth in 2020 -7.0%

EBRD forecast for Lithuania’s real GDP growth in 2021 5.0%

Lithuania’s GDP expanded by 3.9 per cent in 2019, thanks mainly to strong exports and investment. However, the economy is now on course for a severe downturn because of the coronavirus crisis. Services such as retail trade, transport, accommodation and catering account for a relatively large share of economic output (32 per cent of GDP). At the same time, these services are the most affected by the crisis. Disruptions in global value chains will likely affect manufacturing, as about 25 per cent of Lithuania’s production inputs need to be sourced abroad.
 
In order to protect employment, the parliament has approved provision of wage to companies hit by the coronavirus crisis. The state could cover 60 per cent of wages, with a subsidy not exceeding the minimum wage of €607 per month. The use of state guarantees on loans has been increased, such as through Invega, a national financial institution promoting funding for business. At the end of April, the Parliament approved a law to regulate prices of essential goods and services, applicable only in a state of emergency. The drop in GDP in 2020 could be limited to 7.0 per cent, with a rebound (of 5.0 per cent) in 2021.
 

Lithuania in the EBRD’s 2019-20 Transition Report

 
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