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 3.6%

EBRD forecast for Lithuania’s real GDP growth in 2020 2.3%

GDP growth, at 3.6 per cent in 2018 and 4.0 per cent year on year in the first half of 2019, continues to be supported by vibrant household consumption, investment and exports. Recent labour tax reforms have effectively reduced the tax wedge in 2019 and, amid rising wages and low unemployment rates, have provided an additional boost to household spending. Investment growth is strong as a result of better utilisation of EU funds. Net exports have also positively contributed to growth, especially in the first half of 2019, despite the weaker external environment and a strong base effect.
 
Structural factors and demographics are the main risks over the medium term. In the short term, GDP growth is expected to reach 3.6 per cent in 2019 and 2.3 per cent in 2020. Domestic demand will likely remain the key growth engine, driven by strong household consumption and investment, as companies continue to invest in automation amid mounting labour shortages.
 
Greater investment in productivity could partially offset negative demographic trends associated with ageing and emigration.
 

Lithuania in the EBRD’s 2018-19 Transition Report

Lithuania in the latest beeps survey