View source for Economy of Lithuania

{{Short description|National economy of Lithuania}}

{{Use dmy dates|date=January 2020}}

{{Infobox economy
| country = Lithuania
| image = Baltas by Augustas Didzgalvis.jpg
| caption = [[Šnipiškės|Vilnius CBD]]
| image_size = 310px
| currency = [[Euro]] (EUR, €)
| year = [[Calendar year]]
| organs = [[European Union|EU]], [[World Trade Organization|WTO]], [[OECD]]
| group = {{plainlist|
*[[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
*Largest Baltic economy; systemic corruption; youth emigration<ref name="CIA World Factbook Lithuania">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/lithuania/ |title=Lithuania|publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=7 June 2023}}</ref>}}
| population = {{increase}} 2,862,380 (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |title=Population on 1 January |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=10 July 2020}}</ref>
| gdp = {{plainlist|
*{{increase}} $78,346 billion (nominal, 2023 est.)<ref name="IMFWEOLT">{{cite web|url=https://www.imf.org/en/Publications/WEO/weo-database/2023/April/weo-report?c=946,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2021&ey=2023&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook Database, April 2023|date=April 2023|website=IMF.org|publisher=[[International Monetary Fund]]|access-date=April 19, 2022}}</ref>
*{{increase}} $137,389 billion ([[Purchasing power parity|PPP]], 2023 est.)<ref name="IMFWEOLT"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|78st (nominal, 2023)]]
*[[List of countries by GDP (PPP)|88th (PPP, 2023)]]}}
| growth = {{plainlist|
*-0.13%&nbsp;(2020)
*4.94%&nbsp;(2021)
*1.84%&nbsp;(2022e)
*2.59%&nbsp;(2023e)<ref name="IMFWEOLT"/>}}
| per capita = {{plainlist|
*{{increase}} $28,094 (nominal, 2023 est.)<ref name="IMFWEOLT"/>
*{{increase}} $49,266 (PPP, 2023 est.)<ref name="IMFWEOLT"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|40th (nominal, 2023)]]
*[[List of countries by GDP (PPP) per capita|39th (PPP, 2023)]]}}
| inflation = {{plainlist|
*1.3% (2020 est.)<ref name="IMFWEOLT"/>
*2.2% (2019)<ref name="IMFWEOLT"/>
*2.5% (2018)<ref name="IMFWEOLT"/>}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 3.3%
*[[Secondary sector of the economy|industry]]: 28.5%
*[[Tertiary sector of the economy|services]]: 68.3%
*(2017)<ref>{{cite web |title=The economic context of Lithuania |url=https://www.nordeatrade.com/en/explore-new-market/lithuania/economical-context |website=/www.nordeatrade.com |access-date=24 November 2018 |quote=Agriculture contributes 3.3% to the GDP and employs 9.1% of the active workforce (CIA World Factbook 2017 estimates). Lithuania's main agricultural products are wheat, wood, barley, potatoes, sugar beets, wine and meat (beef, mutton and pork).  The main industrial sectors are electronics, chemical products, machine tools, metal processing, construction material, household appliances, food processing, light industry (including textile), clothing and furniture. The country is also developing oil refineries and shipyards. The industrial sector contributes 28.5% to the GDP employing around 25% of the active population.  Lastly, the services sector contributes 68.3% to the GDP and employs 65.8% of the active population. The information technology and communications sectors are the most important contributors to the GDP.}}</ref>}}
| poverty = {{plainlist|
*21.9% – annual income below  €4,000 (2022)<ref>{{Cite web | url=http://www.compareyourincome.org |title = Compare your income - Perception of income inequality in OECD countries}}</ref>
*{{decreasePositive}} 26.3% at risk of poverty or social exclusion (AROPE, 2019)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=t2020_50&language=en |title=People at risk of poverty or social exclusion |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=14 September 2020}}</ref>}}
| labor = {{plainlist|
*{{decrease}} 1,439,700 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=LT&most_recent_value_desc=true |title=Labor force, total – Lithuania |publisher=[[World Bank]] |website=data.worldbank.org |access-date=1 November 2019}}</ref>
*{{increase}} 77.8% employment rate (Target: 72.8%; 2018)<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=t2020_10&plugin=1 |title=Employment rate by sex, age group 20–64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=18 June 2019}}</ref>}}
| gini = {{decreasePositive}} 35.4 {{color|darkorange|medium}} (2019, [[Eurostat]])<ref>{{cite web |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tessi190&plugin=1 |title=Gini coefficient of equivalised disposable income – EU-SILC survey |publisher=[[Eurostat]] |website=ec.europa.eu |access-date=14 September 2020}}</ref>
| hdi = {{plainlist|
*{{decrease}} 0.875  {{color|darkgreen|very high}} (2021)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=12 October 2022}}</ref> ([[List of countries by Human Development Index|35th]])
*{{increase}} 0.800 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (31st)]] (2021)<ref>{{cite web |title=Inequality-adjusted HDI (IHDI) |url=http://hdr.undp.org/en/indicators/138806 |website=hdr.undp.org |publisher=[[United Nations Development Programme|UNDP]] |access-date=12 October 2022}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 9.1%
*[[Secondary sector of the economy|industry]]: 25.2%
*[[Tertiary sector of the economy|services]]: 65.8%
*(2015 est.)<ref name="CIA World Factbook Lithuania"/>}}
| unemployment = {{plainlist|
*{{Decrease}} 6.4% (April 2022)<ref>{{cite web |url=https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=une_rt_m&lang=en |title=Unemployment by sex and age – monthly average |publisher=[[Eurostat]] |website=appsso.eurostat.ec.europa.eu |access-date=4 October 2020}}</ref>
*{{increaseNegative}} 23.1% youth unemployment (15 to 24 year-olds; July 2020)<ref>{{cite web |title=Unemployment rate by age group |url=https://data.oecd.org/chart/65aL |website=data.oecd.org |publisher=[[OECD]] |access-date=8 September 2020}}</ref>}}
| average gross salary = [[List of European countries by average wage|€2,000]] per month (2023 Q2)
| average net salary = [[List of European countries by average wage|€1,241]] per month (2023 Q2)
| industries = [[Petroleum industry|Petroleum refining]], [[food processing]], energy supplies, [[Chemical industry|chemicals]], [[furniture]], wood products, textile and clothing<ref>{{cite web|title=Pramonės produkcija, be PVM ir akcizo|url=http://osp.stat.gov.lt/statistiniu-rodikliu-analize?id=3442&status=A|publisher=Statistics Lithuania|access-date=7 February 2017|url-status=live|archive-url=https://web.archive.org/web/20170208132925/http://osp.stat.gov.lt/statistiniu-rodikliu-analize?id=3442&status=A|archive-date=8 February 2017}}</ref>
| edbr = {{increase}} [[Ease of doing business index#Ranking|11th (very easy, 2020)]]<ref name="A World Bank Corporate Flagship">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/lithuania |title=Ease of Doing Business in Lithuania |publisher=Doingbusiness.org |access-date=31 October 2017 |url-status=live |archive-url=https://web.archive.org/web/20171104060556/http://www.doingbusiness.org/data/exploreeconomies/lithuania/ |archive-date=4 November 2017  }}</ref>
| exports = {{increase}} $29.12 billion (2017 est.)<ref name="CIA World Factbook Lithuania"/>
| export-goods = Refined fuel, machinery and equipment, chemicals, textiles, foodstuffs, plastics<ref name="CIA World Factbook Lithuania"/>
| export-partners = {{plainlist|
*{{flag|Russia}}(+) 15%
*{{flag|Latvia}}(+) 9.9%
*{{flag|Poland}}(+) 8.1%
*{{flag|Germany}}(+) 7.3%
*{{flag|United States}}(+) 5.3%
*{{flag|Estonia}}(+) 5%
*{{flag|Sweden}}(+) 4.8% 
*(2017)<ref name="CIA World Factbook Lithuania"/>}}
| imports = {{increase}} $31.56 billion (2017 est.)<ref name="CIA World Factbook Lithuania"/>
| import-goods = Oil, natural gas, machinery and equipment, transport equipment, chemicals, textiles and clothing, metals<ref name="CIA World Factbook Lithuania"/>
| import-partners = {{plainlist|
*{{flag|Russia}}(+) 13%
*{{flag|Germany}}(+) 12.3%
*{{flag|Poland}}(+) 10.6%
*{{flag|Latvia}}(+) 7.1%
*{{flag|Italy}}(+) 5.2%
*{{flag|Netherlands}}(+) 5.1%
*{{flag|Sweden}}(+) 4% 
*(2017)<ref name="CIA World Factbook Lithuania"/>}}
| current account = {{increase}} $364 million (2017 est.)<ref name="CIA World Factbook Lithuania"/>
| gross external debt = {{increaseNegative}} $34.48 billion (31 March 2016 est.)<ref name="CIA World Factbook Lithuania"/>
| FDI = {{plainlist|
*{{increase}} $20.43 billion (31 December 2017 est.)<ref name="CIA World Factbook Lithuania"/>
*{{increase}} Abroad: $6.268 billion (31 December 2017 est.)<ref name="CIA World Factbook Lithuania"/> }}
| debt = {{plainlist|
*{{increase}} 36.3% of GDP (2019)<ref name="1st Notif">{{cite web |title=Euro area and EU27 government deficit both at 0.6% of GDP|url=https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |website=ec.europa.eu/eurostat |publisher=Eurostat |access-date=28 April 2020}}</ref>
*{{increase}} €17.524 billion (2019)<ref name="1st Notif"/>}}
| balance = {{plainlist|
*€129 million surplus (2019)<ref name="1st Notif"/>
**+0.3% of GDP (2019)<ref name="1st Notif"/>}}
| revenue = 35.2% of GDP (2019)<ref name="1st Notif"/>
| expenses = 34.9% of GDP (2019)<ref name="1st Notif"/>
| reserves = {{decrease}} €3.9 billion (October 2018)<ref>{{cite web|title=Official reserve assets|url=https://www.lb.lt/en/official-reserve-assets|website=lb.lt|access-date=24 November 2018|archive-url=https://web.archive.org/web/20190331114601/https://www.lb.lt/en/official-reserve-assets|archive-date=31 March 2019|url-status=dead}}</ref>
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title=Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=15 May 2015 |url-status=live |archive-url=https://web.archive.org/web/20110928234500/http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |archive-date=28 September 2011  }}</ref>
*A- (Domestic)
*A- (Foreign)
*AAA (T&C Assessment)
*Outlook: Stable
*[[Moody's]]:<ref>{{cite web |author1=Moody's |title=Rating Action: Moody's affirms Lithuania's A3 rating, outlook remains stable |url=https://www.moodys.com/research/Moodys-affirms-Lithuanias-A3-rating-outlook-remains-stable--PR_371505 |website=moodys.com |publisher=Moody's |access-date=11 December 2018 |date=8 September 2017}}</ref>
*A3 (long-term)
*(P)P-2 (short-term)
*Outlook: Stable
*[[Fitch Group|Fitch]]:<ref>{{cite web |title=Fitch Ratings Upgraded Lithuania's Credit Rating Outlook To "Positive" |date=10 August 2018 |url=https://finmin.lrv.lt/en/news/fitch-ratings-upgraded-lithuania-s-credit-rating-outlook-to-positive |access-date=12 August 2018}}</ref>
*A- (long-term)
*F1 (short-term)
*Outlook: Positive
*Scope:<ref>{{cite web |title=Scope affirms Lithuania's credit ratings at A and revises the Outlook to Stable from Positive |date=28 April 2023 |url=https://www.scoperatings.com/ratings-and-research/rating/EN/174013 |access-date=29 April 2023}}</ref>
*A (long-term rating)
*Stable (long-term Outlook)
*S-1 (short-term rating)}}
| aid = [[Structural Funds and Cohesion Fund|EU structural assistance]]: €8.4 billion 2014–2020<ref>{{cite web|url=http://www.esinvesticijos.lt/lt/finansavimas/apie-2014-2020-es-fondu-investicijas|title=Apie 2014–2020 m. ES fondų investicijas – Finansavimas – 2014–2020 Europos Sąjungos fondų investicijos Lietuvoje|url-status=live|archive-url=https://web.archive.org/web/20160427053818/http://www.esinvesticijos.lt/lt/finansavimas/apie-2014-2020-es-fondu-investicijas|archive-date=27 April 2016}}</ref>
| presentUS$asdefault = yes
}}

[[File:Lithuania's GDP per capita compared to rest of the world (2020).png|thumb|300px|Lithuania's GDP per capita compared to rest of the world (2022)<ref>{{cite web |title=Report for Selected Countries and Subjects: October 2020 |url=https://www.imf.org/en/Publications/WEO/weo-database/2020/October/weo-report?c=512,914,612,614,311,213,911,314,193,122,912,313,419,513,316,913,124,339,638,514,218,963,616,223,516,918,748,618,624,522,622,156,626,628,228,924,233,632,636,634,238,662,960,423,935,128,611,321,243,248,469,253,642,643,939,734,644,819,172,132,646,648,915,134,652,174,328,258,656,654,336,263,268,532,944,176,534,536,429,433,178,436,136,343,158,439,916,664,826,542,967,443,917,544,941,446,666,668,672,946,137,546,674,676,548,556,678,181,867,682,684,273,868,921,948,943,686,688,518,728,836,558,138,196,278,692,694,962,142,449,564,565,283,853,288,293,566,964,182,359,453,968,922,714,862,135,716,456,722,942,718,724,576,936,961,813,726,199,733,184,524,361,362,364,732,366,144,146,463,528,923,738,578,537,742,866,369,744,186,925,869,746,926,466,112,111,298,927,846,299,582,487,474,754,698,&s=NGDPDPC,&sy=2020&ey=2020&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |website=International Monetary Fund |access-date=9 October 2021}}</ref>]]

The '''economy of Lithuania''' is the largest economy among the three [[Baltic states]].<ref>{{cite web |title=Gross domestic product (GDP)|url=https://data.oecd.org/gdp/gross-domestic-product-gdp.htm|website=OECD|access-date=27 June 2020}}</ref><ref>{{cite web|title=World Economic Outlook Database|url=https://www.imf.org/en/Publications/WEO/weo-database/2021/April/weo-report?c=939,941,946,&s=PPPPC,&sy=2019&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|access-date=27 June 2020|publisher=International Monetary Fund}}</ref> [[Lithuania]] is a member of the [[European Union]] and belongs to the group of very high [[Human Development Index|human development]] countries and is a member of the [[WTO]] and [[OECD]].

In the 1990s, Lithuania rapidly moved from a centrally [[planned economy]] to a [[market economy]], implementing numerous liberal reforms. It enjoyed high growth rates after joining the European Union along with the other Baltic states, leading to the notion of a [[Baltic Tiger]]. Lithuania's economy (GDP) grew more than 500 percent since [[Act of the Re-Establishment of the State of Lithuania|regaining independence]] in 1990. The Baltic states have a combined workforce of 3.3 million people, with 1.4 million of these working people living in Lithuania. 

GDP growth reached its peak in 2008, and was approaching the same levels again in 2018.<ref>{{cite web |title=Lithuania. GDP (current US$) |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=LT |website=data.worldbank.org |access-date=24 November 2018}}</ref> Similar to the other Baltic States, the Lithuanian economy suffered a [[Great Recession|deep recession]] in 2009, with GDP falling by almost 15%. After this severe recession, the country's economy started to show signs of recovery already in the 3rd quarter of
2009. It returned to growth in 2010, with a positive 1.3 outcome and with 6.6 per cent growth during the first half of 2011. The country is one of the fastest growing economies in the EU.<ref>{{cite web |title=Lithuanias Year 2012 Budget Deficit Set Bellow 3 per cent GDP |url=http://www.bns.lt/topic/912/news/38987104/print/true/ |website=bns.lt |access-date=18 November 2018}}</ref> GDP growth had resumed in 2010, albeit at a slower pace than before the crisis.<ref name="Statistics Lithuania">{{cite web |url=http://www.stat.gov.lt/en/news/view/?id=7274 |title=Statistics Lithuania |publisher=Stat.gov.lt |date=28 December 2009 |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110723082214/http://www.stat.gov.lt/en/news/view/?id=7274 |archive-date=23 July 2011  }}</ref><ref>{{cite web|url=https://www.seb.lt/sites/default/files/web/document/lietuvos_makroekonomikos_apzvalga/lma59.pdf|title=Lietuvos makroekonomikos apzvalga|publisher=SEB Bankas|date=April 2015|access-date=1 July 2015|url-status=live|archive-url=https://web.archive.org/web/20150701184754/https://www.seb.lt/sites/default/files/web/document/lietuvos_makroekonomikos_apzvalga/lma59.pdf|archive-date=1 July 2015}}</ref> The success of the crisis taming is attributed to the [[austerity]] policy of the Lithuanian government.<ref>{{cite news |title=Lithuania rules out devaluation |newspaper=Financial Times |date=18 June 2009 |url=https://www.ft.com/content/692bf806-5bef-11de-aea3-00144feabdc0 |access-date=18 November 2018 |quote=But Mr Kubilius, speaking in Brussels ahead of an EU summit, said his government would press ahead with its austerity programme and would not request a relaxation of the terms for joining the euro area that are set out under EU treaty law.}}</ref>

Lithuania has a sound fiscal position. The 2017 budget resulted in a 0.5% surplus, with the gross debt stabilising at around 40% of the GDP. The budget remained positive in 2017, and was expected to continue to do so in 2018.<ref>{{cite web|url=https://lrv.lt/uploads/main/documents/files/OECD%20Economic%20Surveys%20-%20Lithuania%202018.pdf|title=OECD Economic Surveys. LITHUANIA|publisher=OECD|date=July 2018|access-date=17 November 2018|quote=Lithuania’s fiscal position is sound. After revenues fell sharply in the wake of the 2008 crisis, the government started consolidating public finances on the spending side by reducing the wage bill, lowering social spending and cutting infrastructure investment. The 2016 budget resulted in a 0.3% surplus, the first for more than a decade (Figure 13). As a result, gross debt is now stabilising at around 50% of GDP (OECD National Accounts definition), which is sustainable under various simulations (Fournier and Bétin, forthcoming). The budget remained positive in 2017 and is expected so in 2018.}}</ref>

Lithuania is ranked 11th in the world in the [[Ease of Doing Business Index]] prepared by the [[World Bank Group]],<ref>{{cite web |url=https://www.doingbusiness.org/en/rankings |title=Rankings – Doing Business – The World Bank Group |publisher=Doing Business |access-date=3 November 2019}}</ref> 16th out of 178 countries in the [[Index of Economic Freedom]], measured by [[The Heritage Foundation]]<ref name="heritage1">{{cite web |url=http://www.heritage.org/index/Country/Lithuania |title=Lithuania information on economic freedom &#124; Facts, data, analysis, charts and more |publisher=Heritage Foundation |access-date=20 May 2015 |url-status=live |archive-url=https://web.archive.org/web/20150524082051/http://www.heritage.org/index/country/lithuania |archive-date=24 May 2015  }}</ref> and 8th out of 165 countries in the [[Economic Freedom of the World]] 2021<ref name="fraser-institute">{{cite web|title=Economic Freedom of the World: Annual Report 2021|url=https://www.fraserinstitute.org/sites/default/files/economic-freedom-of-the-world-2021.pdf|date=2021|access-date=14 September 2021|page=8}}</ref> by [[Fraser Institute]]. On average, more than 95% of all [[foreign direct investment]] in Lithuania comes from European Union countries. Sweden is historically the largest investor with 20% – 30% of all FDI in Lithuania.<ref>{{cite web|url=https://www.lb.lt/lt/tiesiogines-uzsienio-investicijos-lietuvoje-pagal-sali-1|archive-url=https://web.archive.org/web/20180109194528/https://www.lb.lt/lt/tiesiogines-uzsienio-investicijos-lietuvoje-pagal-sali-1|url-status=dead|archive-date=9 January 2018|title=Tiesioginės užsienio investicijos Lietuvoje pagal šalį – Lietuvos bankas|date=9 January 2018}}</ref> FDI into Lithuania spiked in 2017, reaching its highest ever recorded number of greenfield investment projects. In 2017, Lithuania was the third country, after the [[Republic of Ireland]] and [[Singapore]] by the average job value of investment projects.<ref>{{cite web |last1=Dencik |first1=Jacob |last2=Spee |first2=Roel |title=Global Location Trends – 2018 Annual Report: Getting ready for Globalization 4.0 |url=https://public.dhe.ibm.com/common/ssi/ecm/93/en/93017793usen/93017793usen-00_93017793USEN.pdf |publisher=IBM Institute for Business Value |pages=7 |date=July 2018 |quote=Ireland continues to lead the world for attracting high-value investment, generating substantial inward investment with strengths in key high-value sectors such as ICT, financial and business services and life sciences. But Singapore is now a close second, with Lithuania and Switzerland right behind. |access-date=15 September 2018 |archive-url=https://web.archive.org/web/20190410223308/https://public.dhe.ibm.com/common/ssi/ecm/93/en/93017793usen/93017793usen-00_93017793USEN.pdf |archive-date=10 April 2019 |url-status=dead }}</ref>

Based on OECD data, Lithuania is among the top 5 countries in the world by postsecondary (tertiary) education attainment.<ref name="Population with tertiary education">{{cite web|title=Population with tertiary education|url=https://data.oecd.org/eduatt/population-with-tertiary-education.htm|website=data.oecd.org|access-date=17 November 2018}}</ref> This educated workforce attracted investments, especially in the [[Information and communications technology|ICT]] sector during the past years. The Lithuanian government and the [[Bank of Lithuania]] simplified procedures for obtaining licences for the activities of e-money and payment institutions.<ref name="finmin.lrv.lt">{{cite web|title=Lithuanian Institutions Enhance Focus on New Financial Technologies and Fintech Sector Development in Lithuania|url=https://finmin.lrv.lt/en/news/lithuanian-institutions-enhance-focus-on-new-financial-technologies-and-fintech-sector-development-in-lithuania|website=finmin.lrv.lt|access-date=18 March 2018}}</ref> positioning the country as one of the most attractive for the [[financial technology]] initiatives in the EU.

==History of economy==

The history of Lithuania can be divided into seven major periods. All the periods have some interesting and important facts that affected the economic situation of the country in those times.

*Ancient times – Baltic tribes (until the 13th century)
*[[Kingdom of Lithuania]] (1251–1263)
*[[Grand Duchy of Lithuania]] (1263–1569)
*[[Polish–Lithuanian Commonwealth]] (1569–1795)
*Pressure of the [[Russian Empire]] (1795–1914)
*Republic of Lithuania during the [[interwar period]] (1918–1940)
*[[Lithuanian Soviet Socialist Republic|Soviet occupied Lithuania]] (1944–1990)
*Republic of Lithuania (1990–)

===History up to the 20th century===

{{multiple image
| caption_align = center
| align = left
| direction = horizontal
| total_width = 380
| header_align = left/right/center
| footer_align = left/right/center
| image1 = Lithuanian Long currency in the Trakai Island Castle Museum.jpg
| caption1 = [[Lithuanian long currency|Lithuanian long]] silver currency, 12th–15th centuries
| image2 = Lithuania, Kaunas - various type of ships in Nemunas.jpg
| caption2 = Various types of trade ships in Nemunas near [[Kaunas]], 19th century
}}
The first Lithuanians formed a branch of an ancient ethno-linguistic group known as the [[Balts]]. Lithuanian tribes maintained close trade contacts with the [[Roman Empire]].<ref>IBP, Inc. ''Lithuania Country Study Guide Volume 1 Strategic Information and Developments''. Ed. Lulu.com 2015. Vol. 1. p. 175 Google Books. Lulu.com, 30 January 2015. Web. 3 March 2017. https://books.google.com/books?id=-Tr_CwAAQBAJ&pg=PA175 {{ISBN|0739779109}}, 9780739779101{{self-published source|date=May 2020}}</ref>{{self-published inline|date=February 2020}} [[Amber]] was the main good provided to the [[Roman Empire]] from Baltic Sea coast, via a long route called the [[Amber Road]].

Consolidation of the Lithuanian lands began in the late 12th century. King [[Mindaugas]] was the first Catholic [[King of Lithuania]] in 1253. The expansion of the [[Grand Duchy of Lithuania]] reached its height in the middle of the 14th century under the [[Grand Duke]] [[Gediminas]] (reigned 1316–1341), who established a strong central government which later came to dominate the territories from the Baltic Sea to the [[Black Sea]]. Grand Duke Gediminas issued letters to the [[Hanseatic league]], offering free access to his domains for men of every order and profession from nobles and [[knights]] to tillers of the soil. Economic immigrants and immigrants, seeking religious freedom improved the level of handicrafts. During the reign of Duke [[Kęstutis]] (1297–1382), the first cash taxes were introduced, although most taxes were still paid in goods (e.g., wheat, cattle, horses).

In 1569 the [[Polish–Lithuanian Commonwealth]] formed through the union of the [[Kingdom of Poland (1385–1569)|Kingdom of Poland]] and the Grand Duchy of Lithuania. The economy of the Commonwealth was dominated by feudal agriculture based on the exploitation of the agricultural workforce (serfs). Poland–Lithuania played a significant role in supplying 16th-century Western Europe with exports of three sorts of goods: grain (rye), cattle (oxen) and fur. These three articles amounted to nearly 90% of the country's exports to western markets by overland and maritime trade.{{citation needed|date=January 2016}} There was even a Lithuanian trading vessel – [[vytinė]], used for four hundred years to transport grain via Nemunas river. [[Statutes of Lithuania]] were the main collections of law statements and rules in Lithuania.
 
The Commonwealth was famous for Europe's first and the world's second modern codified national constitution, the so-called [[Constitution of 3 May]], declared on 3 May 1791 (after the 1788 ratification of the [[United States Constitution]]). Economic and commercial reforms, previously shunned as unimportant by the [[Szlachta]], were introduced, and the development of industries was encouraged.{{by whom|date=January 2016}}

Following the [[partitions of the Polish–Lithuanian Commonwealth]] in 1772, 1793 and 1795, the [[Russian Empire]] controlled the majority of Lithuania. During the administration of the Lithuanian lands by the Russian Empire from 1772 to 1917, one of the most important events that affected economic relations was the [[emancipation reform of 1861]] in Russia. The reform amounted to the liquidation of serf dependence previously suffered by peasants; it boosted the development of [[capitalism]].

===Lithuania in the 20th century===

On 16 February 1918, the [[Council of Lithuania]] passed a resolution for the re-establishment of the Independent State of Lithuania. Soon, many economic reforms for sustainable economic growth were implemented. A national currency, called the [[Lithuanian litas]], was introduced in 1922. It proved to become one of the strongest and most stable currencies in Europe during the inter-war period.<ref>{{cite web |title=Monument made of coins in central Vilnius to memorialise the litas and pay tribute to first Governor of Bank of Lithuania|url=https://www.lb.lt/en/news/monument-made-of-coins-in-central-vilnius-to-memorialise-the-litas-and-pay-tribute-to-first-governor-of-bank-of-lithuania |website=lb.lt |access-date=30 November 2018}}</ref> Lithuania had a monometalism system where one litas was covered by 0.150462&nbsp;grams of gold stored by the [[Bank of Lithuania]] in foreign countries. Litas remained stable even in the period of [[Great Depression]]. During the time of its independence, 1918–1940, Lithuania made substantial progress. For example, Lithuania was the third-ranking flax producer and exporter in the world market (export of flax constituted about 30 percent of all export share<ref>{{cite web |title=Trumpas lino žydėjimas, ilgas lino gyvenimas… |url=https://www.sirvinta.net/krastotyra/%E2%80%9Etrumpas-lino-zydejimas-ilgas-lino-gyvenimas-%E2%80%9C/ |website=sirvinta.lt |access-date=19 April 2020 |language=LT}}</ref>), being surpassed only by Soviet Russia and Poland;<ref>{{cite web |last1=Valančius |first1=Grigas |title=The Economic Development and Foreign Trade of Lithuania |url=http://www.lituanus.org/1956/56_1_04Valancius.html |website=lituanus.org |access-date=8 June 2019}}</ref> Lithuanian farm products such as meat, dairy products, many kinds of grain, potatoes, etc. were of superior quality in the world market. Lithuanian farmers were joining into cooperative companies – e.g. ''Lietūkis'', ''Pienocentras'', ''Linas'', which helped farmers to process and sell their products more efficiently and profitably.
 
Having taken advantage of favorable international developments, and driven by its foreign policy aims directed against Lithuanian statehood, the Union of Soviet Socialist Republics (USSR) occupied Lithuania in 1940.<ref>{{cite web |url=http://lietuva.lt/en/history |title=Lithuania – Official Gateway to Lithuania – History |publisher=Lietuva.lt |access-date=3 April 2010 |url-status=live |archive-url=https://web.archive.org/web/20090124122808/http://lietuva.lt/en/history |archive-date=24 January 2009  }}</ref> Land and the most important objects for the economy were nationalized, and most of the farms collectivized. Just after one year of occupation, poverty level, unemployment increased dramatically, lack of food products appeared. Later, many inefficient factories and industry companies, highly dependent on other regions of USSR, were established in Lithuania. Despite that, in 1990, GDP per capita of the [[Lithuanian Soviet Socialist Republic]] was $8,591, which was above the average for the rest of the Soviet Union of $6,871 but lagging behind developed western countries.

The Soviet era brought Lithuania intensive industrialization and economic integration into the USSR, although the level of technology and state concern for environmental, health, and labor issues lagged far behind Western standards.<ref name=statedep>{{cite web |title=Background Note: Lithuania |publisher=[[U.S. Department of State]] |access-date=19 October 2009 |url=https://2009-2017.state.gov/r/pa/ei/bgn/5379.htm }}</ref> Urbanization increased from 39% in 1959 to 68% in 1989. From 1949 to 1952 the Soviets abolished private ownership in agriculture, establishing collective and state farms. Production declined and did not reach pre-war levels until the early 1960s. The intensification of agricultural production through intense chemical use and mechanization eventually doubled production but created additional ecological problems. This changed after independence, when farm production dropped due to difficulties in restructuring the agricultural sector.<ref name=statedep/>

The overall damage, resulted from the Soviet occupation (including the loss of gross domestic product), estimated according to the [[United Nations|UN]] recognised methodologies amounted to approximately US$800 billion; direct damage (including genocide and deportations of the citizens, property looting) estimation is US$20 billion.<ref>{{cite book |title=Baltic Yearbook of International Law, 2003 |date=31 October 2003 |isbn=978-90-04-13746-2 |page=154 |url=https://books.google.com/books?id=7j82fTuPRr8C&q=soviet+occupation+damage+lithuania+20+billion&pg=PA154 |access-date=10 December 2018|last1=Ziemele |first1=Ineta }}</ref>

According to a 2019 study by economic historians, Lithuania had above average economic growth from 1937 to 1973 (when compared to other economies), but below average growth from 1973 to 1990.<ref>{{Cite journal|last1=Klimantas|first1=Adomas|last2=Zirgulis|first2=Aras|date=16 July 2019|title=A new estimate of Lithuanian GDP for 1937: How does interwar Lithuania compare?|journal=Cliometrica|volume=14|issue=2|pages=227–281|language=en|doi=10.1007/s11698-019-00189-8|s2cid=199312898|issn=1863-2513}}</ref>

===Development since the 1990s===
[[File:Countries with larger GDP PPP per capita than Lithuania 1995 vs 2022.png|thumb|300x300px|Countries with larger GDP PPP per capita than Lithuania in 1995 vs 2022]]
Reforms since the mid-1990s led to an open and rapidly growing economy. Open to global trade and investment, Lithuania now enjoys high degrees of business, fiscal, and financial freedom. Lithuania is a member of the EU and the [[WTO]], so regulation is relatively transparent and efficient, with foreign and domestic capital subject to the same rules. The financial sector is advanced, regionally integrated, and subject to few intrusive regulations.<ref name="heritage1"/>

One of Lithuania's most important reforms was the [[privatization]] of state-owned assets. The first stage of privatization was being implemented between 1991 and 1995. Citizens were given investment vouchers worth €3.1 billion in nominal value, which let them participate in assets selling.<ref name="euro.lt">{{cite web|url=http://www.euro.lt/old/ivykiai/vilk_eng.pdf|archive-url=https://web.archive.org/web/20140922001606/http://www.euro.lt/old/ivykiai/vilk_eng.pdf |archive-date=22 September 2014 |title=Privatisation in Lithuania|author=Eduardas Vilkas|website=euro.lt}}</ref> By October 1995, they were used as follows: 65% for acquisition of shares; 19% for residential dwellings; 5% for agricultural properties; and 7% remained unused.<ref name="euro.lt"/> More than 5,700 enterprises with €2.0 billion worth of state capital in book value were sold using four initial privatization methods: share offerings; auctions; best business plans competitions; and [[hard currency]] sales.<ref name="euro.lt"/>

The second privatization step began in 1995 by approving a new law that ensured greater diversity of privatization methods and that enabled participation in the selling process without vouchers. Between 1996 and 1998, 526 entities were sold for more than €0.7 billion.<ref name="euro.lt"/> Before the reforms, the [[public sector]] totally dominated the economy, whereas the share of the private sector in GDP increased to over 70% by the 2000 and 80% in 2011.<ref>{{cite web |url=http://db1.stat.gov.lt/statbank/SelectVarVal/Define.asp?MainTable=M2010212&PLanguage=1&PXSId=0&ShowNews=OFF |title=Gross value added share by economic sector, year – Database of Indicators – data and statistics |publisher=Db1.stat.gov.lt |date=4 March 2010 |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110720132241/http://db1.stat.gov.lt/statbank/SelectVarVal/Define.asp?MainTable=M2010212&PLanguage=1&PXSId=0&ShowNews=OFF |archive-date=20 July 2011  }}</ref>

[[Monetary reform]] was undertaken in the early nineties to improve the stability of the economy. Lithuania chose a currency board system controlled by the Bank of Lithuania independent of any government institution. On 25 June 1993, the [[Lithuanian litas]] was introduced as a freely convertible currency, but on 1 April 1994 it was pegged to the United States dollar at a rate of 4 to 1. The mechanism of the [[currency board]] system enabled Lithuania to stabilize inflation rates to single digits. The stable currency rate helped to establish foreign economic relations, therefore leading{{citation needed|date=July 2015}} to a constant growth of foreign trade.<ref>{{cite web |url=http://www.stat.gov.lt/en/pages/view/?id=1459&PHPSESSID=85abfbf91a49eff078b127efada12e13 |title=Foreign trade &#124; Statistics Lithuania |publisher=Stat.gov.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110723082140/http://www.stat.gov.lt/en/pages/view/?id=1459&PHPSESSID=85abfbf91a49eff078b127efada12e13 |archive-date=23 July 2011  }}</ref>

By 1998, the economy had survived the early years of uncertainty and several setbacks, including a banking crisis. However, the [[1998 Russian financial crisis|collapse of the Russian ruble]] in August 1998 shocked the economy into negative growth and forced the reorientation of trade from Russia towards the West.<ref name=statedep/>

[[File:Share of Private Sector in GDP.JPG|thumb|400px|Share of private sector in GDP]]

Lithuania was invited to the Helsinki EU summit in December 1999 to begin EU accession talks in early 2000.<ref>{{cite web|url=http://europa.eu/generalreport/en/1999/pt0595.htm|title=General Report 1999 - Chapter V: Enlargement – Section 4: Accession negotiations (3/3)|url-status=dead|archive-url=https://web.archive.org/web/20071231081859/http://europa.eu/generalreport/en/1999/pt0595.htm|archive-date=31 December 2007}}</ref>

After the [[1998 Russian financial crisis|Russian financial crisis]], the focus of Lithuania's export markets shifted from East to West. In 1997, exports to the Soviet Union's successor entity (the [[Commonwealth of Independent States]]) made up 45% of total Lithuanian exports. This share of exports dropped to 21% of the total in 2006, while exports to EU members increased to 63% of the total.<ref name=statedep/> Exports to the United States made up 4.3% of all Lithuania's exports in 2006, and imports from the United States comprised 2% of total imports. Foreign direct investment (FDI) in 2005 was €0.8 billion.

On 2 February 2002 the litas was pegged to the [[euro]] at a rate of 3.4528 to 1, which remained until Lithuania adopted the euro in 2015. Lithuania was very close to introducing the euro in 2007, but the inflation level exceeded the [[Euro convergence criteria|Maastricht requirements]].<ref>{{cite web |url=http://infolex.lt/portal/start.asp?Tema=1&str=15895 |title=Pradžia |publisher=Infolex.Lt |access-date=3 April 2010 |url-status=live |archive-url=https://web.archive.org/web/20110722151515/http://infolex.lt/portal/start.asp?Tema=1&str=15895 |archive-date=22 July 2011  }}</ref> On 1 January 2015, Lithuania became the 19th country to use the euro.<ref name=interest>{{cite news|author1=Giovanna Maria Dora Dore|title=Hopping on a Sinking Ship?|url=http://www.the-american-interest.com/2015/01/28/hopping-on-a-sinking-ship|work=[[The American Interest]]|date=28 January 2015|url-status=live|archive-url=https://web.archive.org/web/20150214234935/http://www.the-american-interest.com/2015/01/28/hopping-on-a-sinking-ship/|archive-date=14 February 2015}}</ref>

The Vilnius Stock Exchange, now renamed the [[NASDAQ OMX Vilnius]], started its activity in 1993 and was the first stock exchange in the Baltic states. In 2003, the VSE was acquired by OMX. Since 27 February 2008 the Vilnius Stock Exchange has been a member of NASDAQ OMX Group, which is the world's largest exchange company across six continents, with over 3,800 listed companies.<ref>{{cite web| url = http://www.nasdaqomxbaltic.com/en/exchange-information/about-us |title=NASDAQ OMX Baltic |publisher= NASDAQ OMX Baltic |access-date=3 April 2010}}</ref> The market cap of Vilnius Stock Exchange was €3.4 billion on 27 November 2009.<ref>{{cite web|url=http://www.nasdaqomxbaltic.com/market/?pg=capital&currency=EUR&market=XVSE&stocktype&#91;&#93;=main&stocktype&#91;&#93;=free&period=day&start_d=26&start_m=11&start_y=2009&end_d=27&end_m=11&end_y=2009 | title = Turukapitalisatsioon|date=26 November 2009|publisher=Aktsiad, Vabaturg, Vilniuse börs}}</ref>

During the last decade (1998–2008) the structure of Lithuania's economy has changed significantly. The biggest changes were recorded in the agricultural sector as the share of total employment decreased from 19.2% in 1998 to just 7.9% in 2008. The service sector plays an increasingly important role. The share of GDP in financial intermediation and real estate sectors was 17% in 2008 compared to 11% in 1998. The share of total employment in the financial sector in 2008 has doubled compared with 1998.<ref name="autogenerated2">[http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M2010204&PLanguage=1&TableStyle=&Buttons=&PXSId=5999&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= Structure of gross value added by kind of economic activity and year] {{webarchive|url=https://web.archive.org/web/20110720132305/http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M2010204&PLanguage=1&TableStyle=&Buttons=&PXSId=5999&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |date=20 July 2011 }}</ref><ref>{{cite web |url=http://db1.stat.gov.lt/statbank/default.asp?w=1024 |title=Rodiklių duomenų bazė |publisher=Db1.stat.gov.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100402103321/http://db1.stat.gov.lt/statbank/default.asp?w=1024 |archive-date=2 April 2010  }}</ref>

===Lithuania in the 21st century===
[[File:GDP_per_capita_Baltics.svg|thumb|right|Real GPD per capita development of Estonia, Latvia and Lithuania]]
[[File:Real GDP growth rate in Lithuania 1996-2019.png|thumb|220px|Real GDP growth in Lithuania, 1996–2019]]
[[File:Economic sentiment indicator and its components.JPG|thumb|220px|Economic sentiment indicator and its components]]
[[File:Balance of Payments.JPG|thumb|220px|Balance of payments in Lithuania, quarterly data]]
Between 2000 and 2017, the Lithuanian GDP grew by 308%.<ref>{{cite web |title=Lithuania. GDP (current US$) |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2017&locations=LT&start=2000 |website=data.worldbank.org |access-date=24 November 2018}}</ref>

One of the most important factors contributing to Lithuania's economic growth was its accession to the [[WTO]] in 2001 and the EU in 2004, which allows free movement of labour, capital, and trade among EU member states. On the other hand, rapid growth caused some imbalances in inflation and [[balance of payments]]. The current account deficit to GDP ratio in 2006–2008 was in the double digits and reached its peak in the first quarter of 2008 at a threatening 18.8%.<ref name="autogenerated3">{{cite web |url=http://www.lb.lt/stat_pub/statbrowser.aspx?group=8008&lang=en |title=Bank of Lithuania : Statistics |publisher=Lb.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20081121060759/http://www.lb.lt/stat_pub/statbrowser.aspx?group=8008&lang=en |archive-date=21 November 2008  }}</ref> This was mostly due to rapid loan portfolio growth as Scandinavian banks provided cheap credit under quite lax rules in Lithuania. The volume of loans to acquire lodgings has grown from 50 million LTL in 2004 up to 720 million LTL in 2007.{{cn|date=January 2021}} Consumption was affected by credit expansion as well. This led to high inflation of goods and services, as well as [[trade deficit]]. A [[Baltic states housing bubble|housing bubble]] was formed.

The global [[credit crunch]] which started in 2008 affected the real estate and retail sectors. The construction sector shrank by 46.8% during the first three-quarters of 2009 and the slump in retail trade was almost 30%.<ref name="Statistics Lithuania"/><ref>{{cite web |url=http://www.stat.gov.lt/en/news/view/?id=7258 |title=Statistics Lithuania |publisher=Stat.gov.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110723082158/http://www.stat.gov.lt/en/news/view/?id=7258 |archive-date=23 July 2011  }}</ref> GDP plunged by 15.7% in the first nine months of 2009.<ref name="Statistics Lithuania"/>

Lithuania was the last among the Baltic states to be hit by recession because its GDP growth rate in 2008 was still positive, followed by a slump of more than 15% in 2009. In the third quarter of 2009, compared to the previous quarter, GDP again grew by 6.1% after five-quarters with negative numbers.<ref name="Statistics Lithuania"/> Austerity policy (four-fifths of the fiscal adjustment consisted of expenditure cuts)<ref>{{cite web |last1=Åslund |first1=Anders |title=Lithuania's remarkable recovery |url=https://euobserver.com/opinion/114419 |website=euobserver.com |access-date=24 November 2018 |date=28 November 2011 |quote=This year, Lithuania is one of the fastest growing economies in Europe with an annualized growth rate of 6.6 percent during the first half of the year. This high growth is driven by an exports surge of no less than 38 percent.  This is an incredible achievement after a vicious financial crisis. Remember that Lithuania’s GDP slumped by 14.7 percent in 2009. The explanation is rigorous government policy. Lithuania’s attainment is often ignored or belittled because its neighbors Estonia and Latvia have carried out similar miracles, but they are all true heroes, and Lithuania’s cure looks remarkable also among this tough competition.}}</ref> introduced by the [[Kubilius Cabinet II|Kubilius government]] helped to balance the [[Current account (balance of payments)|current account]] from −15.5 in 2007 to 1.6 in 2009.<ref>{{cite web |title=Lithuania.Current account balance (% of GDP) |url=https://data.worldbank.org/indicator/BN.CAB.XOKA.GD.ZS?locations=LT |website=data.worldbank.org |publisher=The World Bank |access-date=24 November 2018}}</ref> Economic sentiment and confidence of all business activities have rebounded from a record low at the beginning of the year 2009.

Sectors related to domestic consumption and real estate still suffer from the economic crisis, but exporters have started making profits even with lower levels of revenue. The catalysts of growing profit margins are lower raw material prices and staff expense.

At the end of 2017, investment of Lithuania's enterprises abroad amounted to EUR 2.9 billion. The largest investment was made in Netherlands (24.1 per cent of the total direct investment abroad), Cyprus (19.8 per cent), Latvia (14.9 per cent), Poland (10.5 per cent) and Estonia (10.3 per cent). Lithuania's direct investment in the EU member states totalled EUR 2.6 billion, or 89.3 per cent of the total direct investment abroad.<ref>{{cite web |title=Statistical yearbook of Lithuania. 2018 |url=https://osp.stat.gov.lt/services-portlet/pub-edition-file?id=31620 |website=osp.stat.gov.lt |access-date=24 November 2018 |page=324}}</ref>

Based on the Eurostat's data, in 2017, the value of Lithuanian exports recorded the most rapid growth not only in the Baltic countries, but also across Europe, which was 16.9 per cent.<ref>{{cite web |title=Lithuanian exports which grew most across Europe last year will beat value records this year |url=https://www.verslilietuva.lt/en/news/lithuanian-exports-grew-across-europe-last-year-will-beat-value-records-year/ |website=verslilietuva.lt |access-date=24 November 2018}}</ref> Lithuania performs well in few measures of well-being in the Better Life Index by OECD, ranking above the average in education and skills, and work-life balance. It is below the average in income and wealth, jobs and earnings, housing, health status, social connections, civic engagement, environmental quality, personal security, and subjective well-being.<ref>{{cite web |title=OECD Better Life. Lithuania |url=http://www.oecdbetterlifeindex.org/countries/lithuania/ |access-date=2 July 2019}}</ref> Lithuanian people are the happiest people in the Baltic States.<ref>{{cite web|title=Are Lithuanian residents happy in their own country?|url=https://www.lb.lt/en/news/are-lithuanian-residents-happy-in-their-own-country|website=lb.lt|access-date=2 July 2019|archive-url=https://web.archive.org/web/20190702181056/https://www.lb.lt/en/news/are-lithuanian-residents-happy-in-their-own-country|archive-date=2 July 2019|url-status=dead}}</ref><ref>{{cite web |title=World Happiness Report |url=https://s3.amazonaws.com/happiness-report/2018/WHR_web.pdf |access-date=2 July 2019 |pages=20–21 }}</ref>

====Euro adoption====
On 1 January 2015, Lithuania became the 19th country to adopt the euro. Joining the euro would relieve the Bank of Lithuania of defending the value of the litas, and "it would give Lithuania a say in the decision-making of the [[European Central Bank]] (ECB), as well as access to the ECB [[Single Resolution Mechanism|single-resolution fund]] and cheaper borrowing costs".<ref name=interest/>

==Business climate==
[[File:Interior of the shopping mall PC Europa in Vilnius, Lithuania in 2022 (2).jpg|thumb|upright|Shopping mall in Vilnius with international brandmarks]]
Cumulative foreign direct investment (FDI) in 2017 was EUR 14.7 billion, or 35 per cent of GDP, EUR 5215 per capita.<ref name="Lithuania-FDI">{{cite web |title=FOREIGN DIRECT INVESTMENT FLOW DOUBLED IN 2017 |url=https://osp.stat.gov.lt/en/naujienos?articleId=5648575 |publisher=The Bank of Lithuania and Statistics Lithuania |access-date=22 November 2018}}</ref> The largest FDI flow in Lithuania was into manufacturing (EUR 73.7 million), agriculture, forestry, fishery (EUR 27.4 million), information and communication (EUR 10 million).  Sweden, The Netherlands and Germany have remained the largest investors.<ref name="Lithuania-FDI" />

Lithuania seeks to become an innovation hub by 2020. To reach this goal, it is putting its efforts into attracting FDI to added-value sectors, especially IT services, software development, consulting, finance, and logistics.<ref>{{cite web |title=Lithuania – one of the fastest-growing in EU Innovation area |url=https://mosta.lt/en/news/29-news/278-lithuania-one-of-the-fastest-growing-in-innovation-area |access-date=22 November 2018}}</ref> Well-known international companies such as [[Microsoft]], [[IBM]], [[Transcom]], [[Barclays]], [[Siemens]], [[SEB bankas|SEB]], [[TeliaSonera]], [[Paroc]], [[Wix.com]], [[Altria Group|Philip Morris]], [[Thermo Fisher Scientific]] established a presence in Lithuania.

[[File:Kaunas FEZ.jpg|thumb|upright|Aerial view of the [[Kaunas Free Economic Zone]]]]
Lithuanian FEZs ([[Free economic zone]]) offer developed infrastructure, service support, and tax incentives. A company set up in an FEZ is exempt from corporate taxation for its first six years, as well as a tax on dividends and real estate tax.<ref>{{cite web |url=http://www.businesslithuania.com/en/FEZWithTaxBenefitsandOSSServices.html |title=Free Economic Zones With Tax Benefits And One-Stop-Shop Services |publisher=InvestLithuania.com |access-date=3 April 2010 |url-status=live |archive-url=https://web.archive.org/web/20100912170146/http://www.businesslithuania.com/en/FEZWithTaxBenefitsandOSSServices.html |archive-date=12 September 2010  }}</ref>
7 FEZ operate in Lithuania – [[Marijampolė Free Economic Zone]], [[Kaunas Free Economic Zone]], [[Klaipėda Free Economic Zone]], [[Panevėžys Free Economic Zone]], [[Akmenė Free Economic Zone]], [[Šiauliai Free Economic Zone]], [[Kėdainiai Free Economic Zone]].
There are nine industrial sites in Lithuania, which can also provide additional advantages by having a well-developed infrastructure, offering consultancy service and tax incentives.<ref name="Industrial Parks">{{cite web |url=http://www.businesslithuania.com/en/Industrial_Parks.html |title=Industrial Parks |publisher=InvestLithuania.com |access-date=3 April 2010 |url-status=live |archive-url=https://web.archive.org/web/20101008021844/http://www.businesslithuania.com/en/Industrial_Parks.html |archive-date=8 October 2010  }}</ref> Lithuania is ranked third among developed economies by the quantity (16) of [[Special economic zone|Special Economic Zones]] – after USA (256) and Poland (21).<ref>{{cite web |title=WORLD INVESTMENT REPORT 2019: Special Economic Zones |url=https://unctad.org/en/PublicationsLibrary/wir2019_en.pdf |website=unctad.org |access-date=20 June 2019 |page=152 }}</ref>

Lithuanian municipalities provide special incentives to investors who create jobs or invest in infrastructure. Municipalities may tie designation criteria to additional factors, such as the number of jobs created or environmental benefits. Strategic investors' benefits could include favorable tax incentives for up to ten years. Municipalities may grant special incentives to induce investments in municipal infrastructure, manufacturing, and services.<ref>{{cite web |title=Lithuania. BUREAU OF ECONOMIC AND BUSINESS AFFAIRS 2018. Investment Climate Statements |url=https://www.state.gov/e/eb/rls/othr/ics/2018/eur/281605.htm |archive-url=https://web.archive.org/web/20181123022655/https://www.state.gov/e/eb/rls/othr/ics/2018/eur/281605.htm |url-status=dead |archive-date=23 November 2018 |access-date=22 November 2018}}</ref>

About 40 percent of surveyed investors confirmed that they are carrying out [[Research and development|Research and experimental development]] (R&D) or plan to do it in their Lithuanian branches.<ref>{{cite web |title=Dar 100 gamyklų per ateinančius penkerius metus |url=https://www.vz.lt/pramone/2018/11/22/dar-100-gamyklu-per-ateinancius-penkerius-metus |website=vz.lt |access-date=22 November 2018}}</ref> In 2018 Lithuania ranked as the second most attractive location for manufacturers in the Manufacturing Risk Index 2018.<ref>{{cite web |title=Manufacturing Risk Index 2018 |url=https://www.ahk-balt.org/fileadmin/AHK_Baltikum/user_upload/Manufacturing_Index_2018_final.pdf |publisher=Cushman & Wakefield }}</ref> In 2019, Lithuania was 16th in ''Top 20 European FDI destination countries'' list, created by the [[Ernst & Young]].<ref>{{cite web |title=EY Attractiveness Survey: Europe |url=https://www.ey.com/Publication/vwLUAssets/ey-europe-attractiveness-survey-2019/$File/ey-europe-attractiveness-survey-2019.pdf |page=11 }}</ref>

==Corporations==
{{Unreferenced section|date=May 2019}}
Lithuania traditionally has strong agricultural, furniture, logistics, [[textile]], [[biotechnology]] and [[laser]] industries. 
[[Maxima Group|Maxima]] is a retail chain operating in Lithuania, Latvia, Estonia, Poland and Bulgaria and it is the largest Lithuanian capital company and the largest employer in the Baltic states. [[Girteka Logistics]] is Europe's largest transport company.<ref>{{cite web|url=https://www.delfi.lt/a/76133115|title=Lithuania's public secret, Europe's biggest transport company is located here |author1=Ludo Segers |author2=Justinas Šuliokas |publisher=The Lithuania Tribune|website=DELFI}}</ref> ''Biotechpharma'' is a biopharmaceutical research and development company with a focus on recombinant protein technology development. The BIOK Laboratory is a startup founded by biochemistry scientists which is the biggest producer of Lithuanian natural cosmetic products. UAB SANITEX is the largest wholesale, distribution and logistics company in Lithuania and Latvia, also active in Estonia and Poland. UAB SoliTek Cells – leading producer of solar cells in Northern Europe. One of the leaders of cellular [[Internet of things|IoT]] gateways producers in Europe – UAB Teltonika.

In the "Baltic Top 50", the biggest Baltic states companies rating created by [[Compagnie Française d'Assurance pour le Commerce Extérieur|Coface]], more than half – 29 – companies are from Lithuania.<ref>{{cite web |title=Coface Baltic Top 50 – 2019 |url=https://www.cofacecentraleurope.com/News-Publications/Publications/Coface-Baltic-Top-50-2019-Edition |publisher=Coface Central Europe |access-date=8 December 2019}}</ref>

===Largest companies===
Largest companies of Lithuania in 2022, by revenue:<ref name="vz-largest-corp">{{cite web|title=Didžiausios Lietuvos bendrovės 2022|url=https://www.vz.lt/reitingai/|trans-title=Largest companies of Lithuania 2022|language=lt|date=30 May 2023|website=Verslo Žinios|access-date=4 August 2023}}</ref>

{| class="wikitable sortable" style="text-align:right;"
|- style="background:#efefef;"
! style="text-align:center;"| Rank|| style="text-align:center;"| Name|| style="text-align:center;"| Headquarters|| style="text-align:center;"| Revenue<br />(bil.&nbsp;€) || style="text-align:center;"| Employees || style="text-align:center;"| Industry<br />
|-
| style="text-align:center;"| {{0}}1. {{same position|a}} || style="text-align:left;"| [[Orlen Lietuva]], AB || style="text-align:left;"| [[Mažeikiai]] || 7.552 {{rise|a}} || 1,437 || style="text-align:left;"| [[Oil]], [[petrol]]
|-
| style="text-align:center;"| {{0}}2. {{rise|a}} || style="text-align:left;"| [[Ignitis]], UAB || style="text-align:left;"| [[Vilnius]] || 2.929 {{rise|a}} || 345 || style="text-align:left;"| [[Energy]]
|-
| style="text-align:center;"| {{0}}3. {{same position|a}} || style="text-align:left;"| [[Maxima Group|Maxima LT]], UAB || style="text-align:left;"| Vilnius || 1.985 {{rise|a}} || 12,035 || style="text-align:left;"| [[Retail]]
|-
| style="text-align:center;"| {{0}}4. {{fall|a}} || style="text-align:left;"| [[Fermentas|Thermo Fisher Scientific Baltics]], UAB || style="text-align:left;"| Vilnius || 1.477 {{fall|a}} || 1,817 || style="text-align:left;"| [[Biotechnology]], [[pharmaceutical]]
|-
| style="text-align:center;"| {{0}}5. {{rise|a}} || style="text-align:left;"| [[Lukoil Baltija|Viada LT]], UAB || style="text-align:left;"| Vilnius || 0.982 {{rise|a}} || 1,139 || style="text-align:left;"| [[Petrol stations]]
|-
| style="text-align:center;"| {{0}}6. {{rise|a}} || style="text-align:left;"| [[Achema]], AB || style="text-align:left;"| [[Jonava]] || 0.937 {{rise|a}} || 1,207 || style="text-align:left;"| [[Fertilizer]]
|-
| style="text-align:center;"| {{0}}7. {{fall|a}} || style="text-align:left;"| [[Linas Agro Group|Linas Agro]], AB || style="text-align:left;"| [[Panevėžys]] || 0.882 {{rise|a}} || 198 || style="text-align:left;"| [[Agribusiness]]
|-
| style="text-align:center;"| {{0}}8. {{new|a}} || style="text-align:left;"| [[Circle K|Circle K Lietuva]], UAB || style="text-align:left;"| Vilnius || 0.858 || 972 || style="text-align:left;"| [[Petrol stations]]
|-
| style="text-align:center;"| {{0}}9. {{new|a}} || style="text-align:left;"| [[Palink|Iki Lietuva]], UAB || style="text-align:left;"| Vilnius || 0.819 || 5,861 || style="text-align:left;"| [[Retail]]
|-
| style="text-align:center;"| {{0}}10. {{new|a}} || style="text-align:left;"| {{Interlanguage link|NEO Group|lt|3=Neo group}}, UAB || style="text-align:left;"| {{Interlanguage link|Rimkai (Klaipėda)|lt=Rimkai|lt|3=Rimkai (Dovilai)|display=1}} || 0.740 || 211 || style="text-align:left;"| [[Plastics]]
|-
| style="text-align:center;"| {{0}}11. {{fall|a}} || style="text-align:left;"| [[Sanitex]], UAB || style="text-align:left;"| [[Kaunas]] || 0.719 {{rise|a}} || 1,192 || style="text-align:left;"| [[General merchandise]], [[logistics]]
|}

===Most valuable companies===
Largest Lithuanian companies by valuation (EUR € billions) according to [[15min]] (2022).<ref>{{cite news |last1=Šimelevičienė |first1=Jurgita |title=TOP 100 Vertingiausių Lietuvos įmonių |url=https://www.15min.lt/verslas/naujiena/bendroves/vertingiausiuju-simtuke-milijardiniu-imoniu-suolis-ir-lyderio-augimas-ar-krize-ju-nepakirs-663-1938020 |access-date=3 October 2022 |work=[[15min]] |date=3 October 2022 |language=lt}}</ref> Additionally, two more [[startup company|startup companies]] have been ranked by comparative values in 2022.<ref>{{cite news |last1=Šimelevičienė |first1=Jurgita |title=TOP20 Vertingiausių Lietuvos startuolių |url=https://www.15min.lt/verslas/naujiena/bendroves/top20-vertingiausiu-lietuvos-startuoliu-kada-sulauksime-daugiau-vienaragiu-663-1948204 |access-date=24 October 2022 |work=15min.lt |date=24 October 2022 |language=lt}}</ref>

{| class="wikitable sortable" style="text-align:right;"
|- style="background:#efefef;"
! style="text-align:center;"| Rank|| style="text-align:center;"| Name|| style="text-align:center;"| Headquarters|| style="text-align:center;"| Valuation<br />(bil.&nbsp;€) || style="text-align:center;"| Employees || style="text-align:center;"| Industry<br />
|-
| style="text-align:center;"| {{0}}1 {{same position|a}} || style="text-align:left;"| [[Fermentas|Thermo Fisher Scientific Baltics]], UAB || style="text-align:left;"| [[Vilnius]] || 4.373 {{rise|a}} || 1,790 || style="text-align:left;"| [[Biotechnology|Life sciences]]
|-
| style="text-align:center;"| {{0}}– || style="text-align:left;"| [[Vinted]], UAB || style="text-align:left;"| Vilnius || 3.500 || 1,039 || style="text-align:left;"| [[E-commerce]]
|-
| style="text-align:center;"| {{0}}2 {{same position|a}} || style="text-align:left;"| [[Maxima Group]], UAB || style="text-align:left;"| Vilnius || 2.168 {{fall|a}} || 12,339 || style="text-align:left;"| [[Retail]]
|-
| style="text-align:center;"| {{0}}– || style="text-align:left;"| [[NordVPN|Nord Security]], UAB || style="text-align:left;"| Vilnius || 1.600 || —  || style="text-align:left;"| [[Cybersecurity]]
|-
| style="text-align:center;"| {{0}}3 {{same position|a}} || style="text-align:left;"| [[Ignitis]], UAB || style="text-align:left;"| Vilnius || 1.352 {{fall|a}} || 325 || style="text-align:left;"| [[Energy]]
|-
| style="text-align:center;"| {{0}}4 {{rise|a}} || style="text-align:left;"| [[Girteka Logistics]], UAB || style="text-align:left;"| Vilnius || 1.281 {{rise|a}} || 1,516 || style="text-align:left;"| [[Logistics]]
|-
| style="text-align:center;"| {{0}}5 {{rise|a}} || style="text-align:left;"| [[Telia Lietuva]], AB || style="text-align:left;"| Vilnius || 1.124 {{fall|a}} || 2,012 || style="text-align:left;"| [[Telecommunications industry|Telecommunications]]
|-
| style="text-align:center;"| {{0}}6 {{rise|a}} || style="text-align:left;"| [[Swedbank]], AB || style="text-align:left;"| Vilnius || 1.050 {{rise|a}} || 1,572 || style="text-align:left;"| [[Bank|Banking]]
|-
| style="text-align:center;"| {{0}}7 {{same position|a}} || style="text-align:left;"| [[Achema|Achemos grupė]], UAB || style="text-align:left;"| Vilnius || 1.039 {{rise|a}} || — || style="text-align:left;"| [[Chemical industry]]
|-
| style="text-align:center;"| {{0}}8 {{rise|a}} || style="text-align:left;"| [[Bitė Group]], AB || style="text-align:left;"| Vilnius || 1.041 {{rise|a}} || 1,031 || style="text-align:left;"| [[Telecommunications industry|Telecommunications]]
|-
| style="text-align:center;"| {{0}}9 {{rise|a}} || style="text-align:left;"| [[SEB bankas]], AB || style="text-align:left;"| Vilnius || 0.945 {{rise|a}} || 1,456 || style="text-align:left;"| [[Bank|Banking]]
|-
| style="text-align:center;"| {{0}}10 {{rise|a}} || style="text-align:left;"| [[Avia Solutions Group]], PLC || style="text-align:left;"| Vilnius || 0.926 {{rise|a}} || — || style="text-align:left;"| [[Aviation]]
|}

==Workforce==

[[File:Population with higher education.JPG|thumb|270px|Population with higher education, 2001–2008]]
[[File:Salaries and Unemployment.JPG|thumb|270px|Salaries and unemployment, 2001–2009]]

The number of the population aged 15 years and over is 1.45 million, activity rate was 60 percent in 2017.<ref>{{cite web |title=Darbo jėga ir darbo jėgos aktyvumo lygis pagal amžiaus grupes ir lytį|url=https://osp.stat.gov.lt/statistiniu-rodikliu-analize?hash=69abb07c-fe9d-49bb-a4cf-2759cb2e2a4c#/ |website=osp.stat.gov.lt |access-date=8 December 2018}}</ref>

During the period of 1995–2017 average salary grew more than four times in Lithuania.<ref>{{cite web |title=Average wages Total, US dollars, 1990 – 2017 |url=https://data.oecd.org/chart/5pAo |website=data.oecd.org |publisher=OECD |access-date=8 December 2018}}</ref> Despite this, labour costs in Lithuania are among the lowest in the EU. Average monthly net salary in IV quarter 2018 was EUR 800 and increased by 9.5 percent.
Unemployment in Lithuania has been volatile. Since the year 2001, the unemployment rate has decreased from almost 20% to less than 4% in 2007 thanks to two main reasons. Firstly, during the time of rapid economic expansion, numerous work places were established. This caused a decrease in the unemployment rate and a rise in staff expenses. Secondly, emigration has also reduced unemployment problems since accession to the EU. However, the economic crisis of year 2008 has lowered the need for workers, so the unemployment rate increased to 13.8% and then stabilized in the third quarter of 2009. Unemployment rate in I quarter of 2018 was 6.3 percent.<ref>{{cite web |title=Unemployment rate |url=https://osp.stat.gov.lt/en/statistiniu-rodikliu-analize?hash=3a95e7e1-a66b-4e1a-96da-3fee8c5420dd#/ |website=osp.stat.gov.lt |publisher=Statistics Lithuania |access-date=8 December 2018}}</ref>

Lithuania is among the top 5 countries in the world by postsecondary (tertiary) education attainment.<ref name="Population with tertiary education"/>{{As of|2016}}, 54.9% of the population aged 25 to 34, and 30.7% of the population aged 55 to 64 had completed tertiary education.<ref>{{cite web|title=Population with tertiary education|url=https://data.oecd.org/eduatt/population-with-tertiary-education.htm|website=data.oecd.org|access-date=25 March 2018}}</ref> The share of tertiary-educated 25–64-year-olds in STEM ([[Science, technology, engineering, and mathematics]]) fields in Lithuania were above the OECD average (29% and 26% respectively), similarly to business, administration and law (25% and 23% respectively).<ref>{{cite web|title=Education at a glance 2017. Lithuania|url=http://gpseducation.oecd.org/Content/EAGCountryNotes/LTU.pdf|website=gpseducation.oecd.org|page=2|access-date=4 April 2018|archive-date=8 August 2019|archive-url=https://web.archive.org/web/20190808021023/http://gpseducation.oecd.org/Content/EAGCountryNotes/LTU.pdf|url-status=dead}}</ref>

The level of labour productivity in Lithuania today is about one-third below the OECD average.<ref>{{cite web |title=OECD Economic Surveys LITHUANIA. 2016 |url=https://www.oecd.org/eco/surveys/Lithuania-2016-overview.pdf |website=oecd.org |access-date=24 November 2018 |page=22 |date=24 March 2016}}</ref> Lithuania is ranked 15th in Employment Flexibility Index.<ref>{{cite web |title=2019 Shows Biggest Leap for Lithuania |date=11 December 2018 |url=http://4liberty.eu/employment-flexibility-index-2019-shows-biggest-leap-for-lithuania/ |access-date=26 December 2018 |quote=The 2017 labor law reform significantly improved Lithuania’s position in the Employment Flexibility Index, moving the country from the 27th to 15th position among the EU and OECD countries, according to Employment Flexibility Index 2019 compiled by the Lithuanian Free Market Institute based on the World Bank’s Doing Business data.}}</ref>

==Income and wealth distribution==

Lithuania belongs to high income group according to [[Credit Suisse]] Global Wealth Report 2019.<ref>{{cite web |title=Global Wealth Report 2019 |url=https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-databook-2019.pdf |publisher=Credit Suisse |access-date=15 December 2020 |page=21 }}</ref> As of 2019, Lithuanian average wealth per adult was [[USD|$]]50,254 (an increase of 82% from [[USD|$]]27,507 in the year 2017) <ref>{{cite web |title=Global Wealth Databook |url=https://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=FB790DB0-C175-0E07-787A2B8639253D5A |publisher=Credit Suisse |access-date=8 December 2018 |page=24 |format=PDF |date=November 2017}}</ref> Household debt is among the lowest among EU countries – 49 percent of net disposable income in 2015.<ref>{{cite web |title=Household debt |url=https://data.oecd.org/chart/5pAF |website=data.oecd.org |publisher=OECD |access-date=8 December 2018}}</ref>

==Sectors of economy==
===Services===
One of the most important sub-sectors is information and communication technologies (ICT). Around 37,000 employees work for more than 2,000 ICT companies. ICT received 9.5% of total FDI. Lithuania hosts 13 of the 20 largest IT companies in the Baltic States.<ref>{{cite web |title=The rise of Lithuania as a force in IT: Why Google and Nasdaq are investing here |url=https://www.zdnet.com/article/the-rise-of-lithuania-as-a-force-in-it-why-google-and-nasdaq-are-investing-here/ |website=zdnet.com |access-date=8 December 2018}}</ref> Lithuania exported EUR 128 million worth ICT services in II quarter of 2018.

Development of shared services and [[business process outsourcing]] are some of the most promising fields. Companies that have outsourced their business operations to Lithuania include, [[Danske Bank]], [[Citco|CITCO Group]], [[Western Union]], [[Uber]], MIRROR, [[PricewaterhouseCoopers]], Anthill, [[Adform]], [[Booking Holdings]] ([[Kayak.com]], [[Booking.com]]), HomeToGo, [[Visma]], [[Unity (game engine)|Unity]], [[Yara International]], [[Nasdaq Nordic]], [[Bentley Systems]], [[Ernst & Young]] and many more.

====Financial services====

[[File:Lending and saving data.JPG|thumb|250px|Lending and saving data]]

The financial sector concentrates mostly on the domestic market. There are thirteen commercial banks that [[List of banks in Lithuania|hold a license from the Bank of Lithuania]] and eight foreign bank branches.<ref>{{cite web |url=http://www.lb.lt/eng/institutions/index.html |title=Bank of Lithuania |publisher=Lb.lt |date=18 March 2010 |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20090412035651/http://www.lb.lt/eng/institutions/index.html |archive-date=12 April 2009  }}</ref> Most of the banks belong to international corporations, mainly [[Scandinavia]]n. The financial sector has demonstrated incredible growth in the pre-crisis period (1998–2008). Bank assets were only €3.2 billion or 25.5% from GDP in 2000, half of which consisted of loan portfolio.<ref name="autogenerated7">{{cite web |url=http://www.lb.lt/eng/institutions/results1999.html |title=Bank of Lithuania |publisher=Lb.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20080308015823/http://www.lb.lt/eng/institutions/results1999.html |archive-date=8 March 2008  }}</ref>

By the beginning of the year 2009, bank assets grew to €26.0 billion or 80.8% to GDP, the loan portfolio reached €20.7 billion.<ref>{{cite web |url=http://www.lb.lt/eng/institutions/results2008.html |title=Bank of Lithuania |publisher=Lb.lt |access-date=3 April 2010 }}{{Dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The loan-to-GDP ratio was 64%. The growth of deposits was not as fast as that of loans. At the end of 2008, the loan portfolio was almost twice as big as that of deposits. It demonstrated high dependence on external financing. Contraction in the loan portfolio has been recorded over the past year, so the loans to deposits ratio are slowly getting back to healthy levels.

[[Moody's Corporation]] declared about opening its office in Vilnius.<ref>{{cite web |title=Moody's to open Vilnius office |url=https://emerging-europe.com/business/moodys-to-open-vilnius-office/ |website=emerging-europe.com |date=13 December 2018 |access-date=23 December 2018 |quote="After long and careful deliberation, we chose Vilnius because of its educated and multilingual talent pool, its highly-developed IT infrastructure and its business-friendly environment", said Duncan Neilson, a Moody’s senior vice president. "Given our goals of hiring diverse talent and further developing our automation and cyber security capabilities, choosing Lithuania as our newest EU location makes good business sense".}}</ref>

=====FinTech=====

The country has increasingly sought to position itself as the EU's main fintech hub, hoping to attract international firms by promising to provide European operational licences within three months, compared to a waiting period of up to a year in countries like Germany or the UK.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2017-12-20/this-country-wants-a-piece-of-london-s-fintech|title=This Country Wants a Piece of London's Fintech|date=20 December 2017|work=Bloomberg.com|access-date=20 December 2017|url-status=live|archive-url=https://web.archive.org/web/20171221155243/https://www.bloomberg.com/news/articles/2017-12-20/this-country-wants-a-piece-of-london-s-fintech|archive-date=21 December 2017}}</ref> In 2017 only, 35<ref>{{cite web|title=Lithuania Registered 35 New Fintech Companies in 2017|url=https://www.crowdfundinsider.com/2018/02/128160-lithuania-registered-35-new-fintech-companies-2017|website=crowdfundinsider.com|access-date=18 March 2018}}</ref> [[FinTech]] companies came to Lithuania – a result of Lithuanian government and Bank of Lithuania simplified procedures for obtaining licences for the activities of e-money and payment institutions.<ref name="finmin.lrv.lt"/> Europe's first international Blockchain Centre launched in Vilnius in 2018.<ref>{{cite web |last1=Kostaki |first1=Irene |title=Lithuania debuts as EU gateway for global blockchain industry |url=https://www.neweurope.eu/article/lithuania-debuts-eu-gateway-global-blockchain-industry/ |website=neweurope.eu |date=31 January 2018 |quote=The Lithuanian capital Vilnius launched Europe’s first international Blockchain Centre on 27 January, making it the EU’s only hub for the digital ledger. The new hub will help Europe connect with partner Blockchain Centres in Australia, China, Canada, the UK, Belgium, Denmark, Georgia, Gibraltar, Ukraine, Israel, and Latvia.|access-date=14 July 2018}}</ref> The government of Lithuania also aims to attract financial institutions looking for a new location after [[Brexit]].<ref>{{cite web |title=Vilnius Aims To Attract Companies Scared of Brexit |url=https://www.forbes.com/sites/laura-inamedinova/2016/07/05/vilnius-aims-to-attract-companies-scared-of-brexit/#2e85721c3d9a |website=forbes.com |access-date=11 December 2018}}</ref><ref>{{cite web |title=Brexit a boon for Lithuania's 'fintech' drive |url=https://www.businesstimes.com.sg/government-economy/brexit-a-boon-for-lithuanias-fintech-drive |website=businesstimes.com.sg |access-date=11 December 2018}}</ref> Lithuania has granted a total of 39 e-money licenses, second in the EU only to the U.K. with 128 licenses. In 2018, [[Google]] set up a payment company in Lithuania,<ref>{{cite web |author1=Milda Šeputytė |author2=Jeremy Kahn |title=Google Payment Expands With E-Money License From Lithuania |url=https://www.bloomberg.com/news/articles/2018-12-21/google-payment-expands-with-e-money-license-from-lithuania |website=bloomberg.com |publisher=Bloomberg | quote=Google Payment, a company owned by Alphabet Inc., obtained an e-money license in Lithuania, joining a growing number of fintech firms that have secured permission from the Baltic nation to offer financial services across the European Union. |access-date=22 December 2018 |date=21 December 2018}}</ref> Vilnius was ranked a seventh FinTech city by [[foreign direct investment]] (FDI) performance in 2019.<ref>{{cite web |title=Fintech Locations of the Future 2019/20: London tops first ranking |url=https://www.fdiintelligence.com/Locations/Asia-Pacific/Singapore/Fintech-Locations-of-the-Future-2019-20-London-tops-first-ranking |website=fdiintelligence.com |access-date=29 August 2019}}</ref>

[[Bank of Lithuania]], the Central Bank of Lithuania established a Regulatory sandbox<ref>{{cite web |title=Regulatory sandbox |url=https://www.lb.lt/en/regulatory-sandbox |website=lb.lt |access-date=6 July 2019 |archive-url=https://web.archive.org/web/20190325142442/https://www.lb.lt/en/regulatory-sandbox |archive-date=25 March 2019 |url-status=dead }}</ref> to test financial innovations in a live environment under the guidance and supervision of the Bank of Lithuania. Bank of Lithuania has also developed LBChain which is the world's first blockchain-based sandbox developed by a financial market regulator, combining technological and regulatory infrastructures.<ref>{{cite web |title=FinTech companies showed avid interest in the LBChain project |url=https://www.lb.lt/en/news/fintech-companies-showed-avid-interest-in-the-lbchain-project |website=lb.lt |access-date=6 July 2019 |archive-url=https://web.archive.org/web/20190706075746/https://www.lb.lt/en/news/fintech-companies-showed-avid-interest-in-the-lbchain-project |archive-date=6 July 2019 |url-status=dead }}</ref>

===Manufacturing===
Lithuania has a much larger manufacturing sector share in the economy's structure than the other Baltic countries. In this regards Lithuania is closer to some Central European countries like the 
Czech Republic or Germany.<ref>{{cite journal |author1=Rimantas Rudzkis |author2=Natalja Titova |title=Manufacturing Industry Trends in Lithuania |journal=Engineering Economics |date=24 November 2006 |volume=50 |issue=5 |url=http://inzeko.ktu.lt/index.php/EE/article/view/11448 |access-date=2 July 2020}}</ref>

Manufacturing constitutes the biggest part of gross value added in Lithuania. The food processing sector constitutes 11% of total exports. Dairy products, especially cheese, are well known in neighbouring countries. Another important manufacturing activity is chemical products. The manufacturing of machinery and equipment sector in Lithuania comprises 7.1% of the country's GDP. 80% of production is exported so chemical products constitute 12.5% of total exports. Year 2019 was exemplary  – more than 10 new factories were opened in Lithuania, working in the fields in engineering, high precision instruments, furniture and medical products.

;Furniture

Furniture production employs more than 50,000 people and has seen double-digit growth over the last three years. The biggest companies in this field work in cooperation with [[IKEA]], which owns one of the biggest wood processing companies in Lithuania. Lithuania is the fourth biggest supplier of furniture for IKEA after Poland, Italy and Germany.<ref>{{cite web |title=Lithuanian furniture makers among Ikea's biggest suppliers |url=https://www.lrt.lt/en/news-in-english/29/119040/lithuanian-furniture-makers-among-ikea-s-biggest-suppliers |website=lrt.lt |date=9 November 2015 |access-date=21 November 2018 |quote=Aivaras Čičelis, deputy president at SEB Bank and head of Corporate Banking Division, said that "there were fears before that Lithuanian furniture makers would be pushed out of business by the Chinese and Indians, but this sector benefited from the financial crisis, when everyone was looking for cheap furniture and turned to Ikea, which sells Lithuanian production.“}}</ref> 

;Automotive industry

[[Continental AG]] in 2018 started to build a factory for high precision car electronics – the biggest greenfield investment project in Lithuania so far.<ref>{{cite web |url=https://www.continental-corporation.com/en/press/press-releases/2017-10-30-cep-kaunas-101944 |title=Continental Expands its Presence in Europe and Builds First Plant in Lithuania|access-date=21 July 2018}}</ref> Another German manufacturer of lighting technology [[Hella (company)|Hella]] opened a plant in 2018 in [[Kaunas Free Economic Zone|Kaunas FEZ]], which will produce sensors, actuators and control modules for the automotive industry.<ref>{{cite web |url=https://evertiq.com/news/44797|title=Hella officially opens its electronics plant in Lithuania|access-date=13 September 2018}}</ref> Lithuania's automotive cluster experienced significant growth during the past 5 years.

Companies in the automotive and engineering sector are relatively small but offer flexible services for small and non-standard orders at competitive prices. The sector employs about 3% of the working population and receives 5.6% of FDI.<ref name="autogenerated4">{{cite web|url=http://www.lepa.lt/files/File/Media&Promotion/Library/ERNST/eyldafdiphase1and2v100209_eu.pdf|title=lepa.lt – Domenai, domenų registravimas – UAB "Interneto vizija"|website=lepa.lt|url-status=dead|archive-url=https://web.archive.org/web/20180513150106/http://www.lepa.lt/files/File/Media%26Promotion/Library/ERNST/eyldafdiphase1and2v100209_eu.pdf|archive-date=13 May 2018|access-date=13 May 2018}}</ref> [[Vilnius Gediminas Technical University]] prepares experts for the sector.

;Biotechnology and life sciences

Lithuania's life science sector is growing around 20–25% annually; with special focus on the production and research of biotechnology, pharmaceutical and medical devices.<ref>{{cite web |last1=Bancroft |first1=Dani |title=What is Lithuania's role in European Biotech? |url=https://labiotech.eu/policy-legal-finance/biotech-lithuania/ |website=labiotech.eu |date=26 July 2016 |access-date=27 November 2018 |quote=Nowadays, as a member of the NATO, the European Union, and Eurozone, Lithuania’s life science sector is growing around 20–25% annually; with special focus on the production and research of biotechnology, pharmaceutical and medical devices.  Many of the products developed in Lithuania are geared towards international markets, with 90% of all life science products and services being exported around the world.}}</ref>

;Laser technology

Lithuanian laser companies were among the first ones in the world to transfer fundamental research into manufacturing. Lithuania's laser producers export laser technologies and devices to nearly 100 countries. Half of all [[picosecond]] lasers sold worldwide are produced by Lithuanian companies, while Lithuanian-made [[femtosecond]] parametric light amplifiers, used in generating the [[Ultrashort pulse laser|ultrashort laser]] pulses, account for as much as 80% of the world market.<ref>{{cite web |title=Lithuania, a leading light in laser technology |url=https://ec.europa.eu/digital-single-market/en/news/lithuania-leading-light-laser-technology |access-date=1 December 2018}}</ref>

===Tourism===

[[Tourism in Lithuania]] becoming increasingly important for local economy, constituting around 5.3% of GDP in 2016.<ref>{{cite web |title=Growing impact of tourism on the Lithuanian economy |url=http://www.tourism.lt/en/news/growing-impact-of-tourism-on-the-lithuanian-economy- |website=tourism.lt |access-date=24 November 2018}}</ref> Lithuania has 22,000 rivers and rivulets, 3,000 lakes, a well-developed rural tourism network, a unique coastal area of almost 100&nbsp;km and four [[UNESCO]] [[World Heritage Site]]s. Lithuania receives more than 1.4 million foreign tourists a year.<ref>{{cite web |title=2017 TOURISM IN LITHUANIA |url=https://osp.stat.gov.lt/services-portlet/pub-edition-file?id=30742 |website=osp.stat.gov.lt |access-date=24 November 2018 |page=7 |quote=In 2017, compared to 2016, the number foreign tourists grew by 4.4 per cent and totaled 1.6 million. The largest number of foreign tourists staying in the accommodation establishments of Lithuania came from Belarus (177 thousand), Germany (176.2 thousand), Russia (168.1 thousand), also from neighbouring countries – Poland (161.4 thousand), and Latvia (152.3 thousand). In 2017, the number of tourists increased from China (33.4 per cent), Greece (27.5 per cent), Luxembourg (24.3 per cent), Iceland (23.6 per cent), Canada (22.3 per cent), USA (21.6 per cent).}}</ref> Germany, Poland, Russia, Latvia, and Belarus supply the most tourists, and a significant number arrive from the UK, Finland, and Italy as well.

===Agriculture===
{{main|Agriculture in Lithuania}}
Despite a decreased share in GDP, the agricultural sector is still important for Lithuania as it employs almost 8% of the work force and supplies materials for the [[food processing]] sector. 44.8% of the land is arable.<ref name="autogenerated8">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/lithuania/|title=The World Factbook – Central Intelligence Agency|date=31 March 2023 }}</ref> Total crop area was 1.8 million hectares in 2008.<ref>{{cite web |url=http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M5010302&PLanguage=1&TableStyle=&Buttons=&PXSId=4753&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |title=Farm crops in the country by kind, type of farm – Database of Indicators – data and statistics |publisher=Db1.stat.gov.lt |access-date=3 April 2010 }}{{Dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> Cereals, wheat, and [[triticale]] are the most popular production of farms. The number of livestock and poultry has decreased twofold compared to the 1990s. The number of cattle in Lithuania at the beginning of the year 2009 was 770,000, the number of dairy cows was 395,000, and the number of poultry was 9.1 million.<ref name="autogenerated9">{{cite web |url=http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M5010401&PLanguage=1&TableStyle=&Buttons=&PXSId=4361&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |title=Number of livestock and poultry by kind, period – Database of Indicators – data and statistics |publisher=Db1.stat.gov.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20120313120521/http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M5010401&PLanguage=1&TableStyle=&Buttons=&PXSId=4361&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |archive-date=13 March 2012  }}</ref>

Lithuanian food consumption has evolved; between 1992 and 2008, consumption of vegetables increased by 30% to 86&nbsp;kg per capita, and consumption of meat and its products increased by 23% during the same period to 81&nbsp;kg per capita.<ref name="autogenerated10">{{cite web |url=http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M5010205&PLanguage=1&TableStyle=&Buttons=&PXSId=4376&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |title=Consumption of main foodstuffs per capita by product – Database of Indicators – data and statistics |publisher=Db1.stat.gov.lt |access-date=3 April 2010 }}{{Dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> On the other hand, consumption of milk and [[dairy product]]s has decreased to 268&nbsp;kg per capita by 21%, and the consumption of bread and grain products decreased to 114&nbsp;kg per capita by 19% as well.<ref name="autogenerated10" />

Lithuania produced in 2018:

* 2.8 million tons of [[wheat]];
* 888 thousand tons of [[sugar beet]] (the beet is used to manufacture [[sugar]] and [[ethanol]]);
* 619 thousand tons of [[barley]];
* 433 thousand tons of [[rapeseed]];
* 296 thousand tons of [[potato]];
* 213 thousand tons of [[pea]];
* 182 thousand tons of [[oat]];
* 153 thousand tons of [[triticale]];
* 149 thousand tons of [[bean]];

In addition to smaller productions of other agricultural products, like [[apple]] (92 thousand tons), [[maize]] (87 thousand tons)and [[rye]] (44 thousand tons). <ref> [http://www.fao.org/faostat/en/#data/QC/ Lithuania production in 2018, by FAO] </ref>

==Regional situation==
[[File:Regional GDP per capita.png|thumb|288px|Regional GDP per capita<ref>{{cite web|url=https://osp.stat.gov.lt/en/statistiniu-rodikliu-analize?id=8446&status=A|title=Indicators database – Oficialiosios statistikos portalas|website=osp.stat.gov.lt|url-status=live|archive-url=https://web.archive.org/web/20170821085627/https://osp.stat.gov.lt/en/statistiniu-rodikliu-analize?id=8446&status=A|archive-date=21 August 2017}}</ref>]]

{| class="sortable wikitable" style="text-align:center; font-size:90%;"
|-
! style="width:170px;"|County !! style="width:70px;"|Area (km<sup>2</sup>)!! style="width:50px;"|Population (2023)<ref name="Population">{{cite web|title=Resident population at the beginning of the year|url=https://osp.stat.gov.lt/statistiniu-rodikliu-analize?indicator=S3R167#/}}</ref>!! style="width:50px;"|Nominal GDP (billion EUR)<ref name="Counties">{{cite web|title=BENDRASIS VIDAUS PRODUKTAS PAGAL APSKRITIS 2021 M.|url=https://osp.stat.gov.lt/informaciniai-pranesimai?eventId=285891|publisher=Statistics Lithuania|access-date=22 November 2018|language=lt|date=25 November 2016}}</ref>!! style="width:50px;"|GDP per capita (EUR)<ref name="Counties" /> 
|-
| [[Alytus County]]
| 5,425
| 135,367
| 1.6
| 11,500
|-
| [[Kaunas County]]
| 8,089
| 580,333
| 11.6
| 20,400
|-
| [[Klaipėda County]]
| 5,209
| 336,104
| 6.0
| 18,400
|-
| [[Marijampolė County]]
| 4,463
| 135,891
| 1.6
| 11,800
|-
| [[Panevėžys County]]
| 7,881
| 211,652
| 3.0
| 14,100
|-
| [[Šiauliai County]]
| 8,540
| 261,764
| 3.9
| 15,000
|-
| [[Tauragė County]]
| 4,411
| 90,652
| 1.1
| 10,900
|-
| [[Telšiai County]]
| 4,350
| 131,431
| 1.8
| 13,500
|-
| [[Utena County]]
| 7,201
| 125,462
| 1.4
| 11,200
|-
| [[Vilnius County]]
| 9,731
| 851,346
| 24.2
| 29,800
|-
! Lithuania
! 65,300
! 2,860,002
! 56.2
! 20,000
|}

Lithuania is divided into ten counties. There are four cities with a population over 100,000 and two cities of over 50,000 people. The gross regional product is concentrated in the two largest counties – [[Vilnius]] and [[Kaunas]]. These two counties account for 2/3 of the GDP with just 50% of the population.<ref name="Population" />

In order to achieve balanced regional distribution of GDP, nine public [[industrial park]]s (Akmene Industrial Park, Alytus Industrial Park, Kedainiai Industrial Park, Marijampolė Industrial Park, Pagegiai Industrial Park, Panevėžys Industrial Park, Radviliskis Industrial Park, Ramygala Industrial Park and Šiauliai Industrial Park) and three private industrial parks (Tauragė Private Industrial Park, Sitkunai Private Industrial Park, Ramučiai Private Logistic and Industrial Park) were established to provide some tax incentives and prepared physical infrastructure.<ref name="Industrial Parks"/>

==Infrastructure==

The transport, storage, and communication sector has increased its importance to the economy of Lithuania. In 2008, it accounted for 12.1% of GDP compared to 9.1% in 1996.<ref name="autogenerated11">{{cite web |url=http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M2010206&PLanguage=1&TableStyle=&Buttons=&PXSId=6003&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= |title=Structure of gross value added by kind of economic activity (31), year – Database of Indicators – data and statistics |publisher=Db1.stat.gov.lt |access-date=3 April 2010 }}{{Dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

===Communications===
{{Main|Telecommunications in Lithuania}}
Lithuania has a broadly developed radio, television, landline and mobile phone, as well as broadband internet networks.

[[Lithuanian National Radio and Television]], the public broadcaster in Lithuania operates 3 television channels, including a satellite channel, as well as 3 radio stations. Privately owned commercial TV and Radio broadcasters operate a multitude national, regional and local channels.<ref>[https://www.cia.gov/the-world-factbook/countries/lithuania/ "Communications"] , Lithuania, ''World Factbook'', U.S. Central Intelligence Agency, 13 May 2015. Retrieved 20 May 2015.</ref>

There are four TIER III datacenters in Lithuania.<ref>{{cite web|url=https://uptimeinstitute.com/TierCertification/allCertifications.php?page=1&ipp=All&clientId=&countryName=Lithuania&tierLevel=3|title=Uptime Institute. Country: Lithuania, Tier Level: Tier III|access-date=19 March 2018}}</ref>
Lithuania is 44th globally ranked country on data center density according to Cloudscene.<ref>{{cite web|url=https://cloudscene.com/market/data-centers-in-lithuania/all|title=Colocation Lithuania – Data Centers|access-date=19 March 2018}}</ref>

The fixed landline network connects 625 thousand households and businesses (down from the record 845 thousand in 2005).<ref name="RRT">{{cite web | title=Lithuanian Communications Sector 2013 | url=http://www.rrt.lt/download/19388/lithuanian_communications_sector_2013.pdf | publisher=Communications Regulatory Authority of the Republic of Lithuania | access-date=20 May 2015 | url-status=dead | archive-url=https://web.archive.org/web/20150927184651/http://www.rrt.lt/download/19388/lithuanian_communications_sector_2013.pdf | archive-date=27 September 2015 | df=dmy-all }}</ref> The decline in subscription and utilization of the landline network has been driven by increased availability of mobile phone services. The mobile telephony penetration rate in Lithuania (of 151 per 100 population in 2013) has been one of the highest in the world.<ref>{{cite web | title=Mobile cellular subscriptions (per 100 people) | url=http://data.worldbank.org/indicator/IT.CEL.SETS.P2?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-last&sort=desc | publisher=World Bank | access-date=20 May 2015 | url-status=live | archive-url=https://web.archive.org/web/20150416185056/http://data.worldbank.org/indicator/IT.CEL.SETS.P2?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-last&sort=desc | archive-date=16 April 2015 | df=dmy-all }}</ref> In 2013, there were 13 providers of mobile phone services, with the three largest ones – BITĖ Lietuva, [[Omnitel Lietuva|Omnitel]], and [[Tele2]] – operating their own cellular networks.

Lithuanian retail internet sector is competitive, with more than 100 service providers. Retail internet connectivity in Lithuania was among the cheapest in Europe; however, the internet penetration rate (64% of households using internet in 2013) was lower than in other EU countries in the region – Estonia (79%), Latvia (70%) and Poland (69%). Lithuanian internet connection speeds have been claimed to be among the fastest in the world<ref>{{cite web |url=http://www.investlithuania.com/lets-talk-lithuania/infrastructure/ |title=ICT Infrastructure |publisher=Invest Lithuania |access-date=20 May 2015 |url-status=dead |archive-url=https://web.archive.org/web/20150504125000/http://www.investlithuania.com/lets-talk-lithuania/infrastructure/ |archive-date=4 May 2015  }}</ref> based on user-initiated tests at [[Speedtest.net]].

===Energy===
{{main|Energy in Lithuania}}
[[File:Heating energy.JPG|thumb|250px|Heating energy data]]

The utilities sector accounts for more than 3% of gross value added in Lithuania. [[Electricity]] production exceeded 12 billion kWh in 2007, and consumption exceeded 9.6 billion kWh. Surplus electricity is exported.

Lithuania operated a [[nuclear power]] plant in [[Visaginas]], which produced 72% of electricity in Lithuania.<ref>{{cite web |url=http://www.vae.lt/en/pages/nuclear_energy |title=Nuclear energy – Visaginas Nuclear Power Plant Project |publisher=Vae.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100302225629/http://www.vae.lt/en/pages/nuclear_energy |archive-date=2 March 2010  }}</ref> The plant was shut down on 31 December 2009 in line with the commitments made when Lithuania joined EU in 2004. A new nuclear power plant in Visaginas has been proposed but the status of the project is uncertain after it was rejected by the voters in a [[2012 Lithuanian nuclear power referendum|referendum in 2012]].

The supply of heating energy was modernized during the decade (1998–2008). Technological loss in the heat energy system has decreased significantly from 26.2% in the year 2000 to 16.7% in 2008. The amount of [[air pollution]] was reduced by one-third. The share of [[renewable energy]] resources in the total fuel balance for heat production increased to almost 20%.

In order to break down [[Gazprom]]'s monopoly<ref>{{cite web |url=https://www.ft.com/content/33113758-8680-11e7-8bb1-5ba57d47eff7 |title=Lithuania becomes first ex-Soviet state to buy US natural gas | website=Financial Times | access-date=26 March 2018 | language=LT}}</ref><ref>{{cite web |url=https://www.euractiv.com/section/energy/news/lithuania-breaks-gazprom-s-monopoly-by-signing-first-lng-deal/ |title=Lithuania breaks Gazprom's monopoly by signing first LNG deal | website=Euractiv.com | access-date=26 March 2018 | language=LT}}</ref> in the natural gas market of Lithuania, the first large scale LNG import terminal ([[Klaipėda LNG FSRU]]) in the Baltic region was built in the port of Klaipėda in 2014. The Klaipėda LNG terminal was called ''Independence'', thus emphasising the aim to diversify the energy market of Lithuania. Norvegian company [[Equinor]] supplies {{convert|540|e6m3|abbr=off}} of natural gas annually from 2015 until 2020.<ref>{{cite web |url=http://enmin.lrv.lt/uploads/enmin/documents/files/EN_Versija/Activities/Activity_benchmarks/Strategic_projects/Liquefied_natural_gas_terminal_in_Klaip%C4%97da/LNG_factsheet_EN.pdf |title= Klaipėda LNG terminal Factsheet | publisher=Ministry of Energy of the Republic of Lithuania | date=27 October 2014 | access-date=19 March 2018}}</ref> The terminal is able to cover 100% of Lithuania's demand and 90% of Latvia's and Estonia's national demand in the future.<ref>{{cite web |url=http://www.lrt.lt/en/news-in-english/29/119304/klaipeda-lng-terminal-one-year-on-independence-or-responsibility |title= Klaipėda LNG Terminal one year on – independence or responsibility?|website=Lrt.lt| date=11 November 2015 | access-date=19 March 2018}}</ref>

[[Kruonis Pumped Storage Plant]] operates as [[Pumped-storage hydroelectricity|pumped-storage]] providing a spinning reserve of the power system, in order to regulate the load curve of the power system 24 hours a day. In 2015 [[Kruonis]] Industrial Park was established as a place for data centers.<ref>{{cite web |title=Lithuanian Energy plans to set up industrial park at Kruonis plant |url=https://www.15min.lt/en/article/business/lithuanian-energy-plans-to-set-up-industrial-park-at-kruonis-plant-527-229215 |website=15min.lt |access-date=6 December 2018}}</ref>

In 2018 synchronising the Baltic States' electricity grid with the [[Synchronous grid of Continental Europe]] has started.<ref>{{cite web |url=http://europa.eu/rapid/press-release_MEMO-18-4285_en.htm |title= Questions and answers on the synchronisation of the Baltic States' electricity networks with the continental European network (CEN) | date=28 June 2018 | access-date=27 July 2018}}</ref>

===Transport===
{{main|Transport in Lithuania}}
[[File:Volume of goods transported, million tonne-kilometers.JPG|thumb|250px|Volume of goods transported, million tonne-kilometers]]
[[File:Funding of roads.JPG|thumb|250px|Funding of roads]]
Lithuania forms part of the transport corridor between the East and the West. The volume of goods transported by road transport has increased fivefold since 1996. The total length of roadways is more than 80,000&nbsp;km, and 90% of them are paved.<ref name="autogenerated8"/> The government spending on road infrastructure exceeded €0.5 billion in 2008. [[Via Baltica]] highway passes through Kaunas, while membership in the [[Schengen Agreement]] allows for smooth border crossing to Poland and Latvia.

[[Rail transport in Lithuania]] provides long-distance passenger and cargo services. Railways carry approximately 50 million tons of cargo and 7 million passengers a year.<ref name="autogenerated12">{{cite web |url=http://www.lepa.lt/en/ExcellentInfrastructure.html |title=Excellent Infrastructure |publisher=Lepa.lt |date=21 December 2007 |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20090413005437/http://www.lepa.lt/en/ExcellentInfrastructure.html |archive-date=13 April 2009  }}</ref> Direct rail routes link Lithuania with Russia, Belarus, Latvia, Poland, and Germany. Also, the main transit route between Russia and Russia's [[Kaliningrad]] Region passes through Lithuania. ''[[Lithuanian Railways]]'' AB transports about 44% of the freight carried through Lithuania.<ref>{{cite web |url=http://www.litrail.lt/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3h3C2N_VzcPIwMDH3NHAyNTU69gPyd_Q-MQQ_1wkA6zeAMcwNFA388jPzdVPzg1T78gO68cAA3xbxg!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfRzgzT0VGSDIwMEw3QTAyNTVKU05CTzEzSjY!/ |title=Lietuvos geležinkeliai |publisher=Litrail.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110722151948/http://www.litrail.lt/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3h3C2N_VzcPIwMDH3NHAyNTU69gPyd_Q-MQQ_1wkA6zeAMcwNFA388jPzdVPzg1T78gO68cAA3xbxg!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfRzgzT0VGSDIwMEw3QTAyNTVKU05CTzEzSjY!/ |archive-date=22 July 2011  }}</ref> This is a very high indicator compared to other EU countries, where freight transportation by rail amounts to only 10% of the total.<ref>{{cite web |url=http://www.litrail.lt/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3h3C2N_VzcPIwMDH3NHAyNTU69gPyd_Q- |title=Lietuvos geležinkeliai |publisher=Litrail.lt |access-date=3 April 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110722151942/http://www.litrail.lt/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3h3C2N_VzcPIwMDH3NHAyNTU69gPyd_Q- |archive-date=22 July 2011  }}</ref>

An ice-free [[Port of Klaipėda|seaport of Klaipeda]] is located in the western part of Lithuania. The port is an important regional transport hub connecting the sea, land and railway routes from east and west. It handles roughly 7,000 ships and 30 million tons of cargo every year, and accepts large-tonnage vessels (dry-cargo vessels up to 70,000 DWT, tankers up to 100,000 DWT and cruise ships up to 270 meters long). The seaport of Klaipėda is able to receive ''[[Panamax]]''-type vessels.<ref name="autogenerated12"/> One of the fastest growing segments of sea transport is passenger traffic, which has increased fourfold since 2002. The inland river cargo port in Marvelė, linking Kaunas and Klaipėda, received first cargo in 2019.<ref>{{cite web |title=Marvelės uostą pasiekė pirmasis krovinys!|url=https://klaipeda.diena.lt/naujienos/kaunas/miesto-pulsas/marveles-uosta-pasieke-pirmasis-krovinys-910893 |website=klaipeda.diena.lt |access-date=3 May 2019 |language=LT}}</ref>

Lithuania has four international airports – [[Vilnius Airport]] (VNO), [[Kaunas Airport]] (KUN), [[Šiauliai International Airport|Šiauliai Airport]] (SQQ) and [[Palanga International Airport|Palanga Airport]] (PLQ). More than [[List of airports in Lithuania|30 domestic airports]] being used by aeroclubs and amateur pilots.

===Storage===

There are more than 600,000 m<sup>2</sup> of modern logistics and [[warehousing]] facilities in Lithuania.<ref name="ober-haus1">{{cite web |url=http://www.ober-haus.lt/files/OH_Lithuania_Commercial_Q3_2009.pdf |title=Archived copy |access-date=26 January 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110722151904/http://www.ober-haus.lt/files/OH_Lithuania_Commercial_Q3_2009.pdf |archive-date=22 July 2011  }}</ref> The biggest supply of new, modern warehousing facilities is in the capital city [[Vilnius]] (after the completion of several new projects in the third quarter of 2009, the supply of modern warehousing premises has increased by nearly 12% in Vilnius and currently reaches 334,400 m<sup>2</sup> of the rentable area). Kaunas is in the second place (around 200,000 m<sup>2</sup>), and [[Klaipėda]] in the third (122,500 m<sup>2</sup>).<ref name="autogenerated12"/> Since the beginning of the year 2009, prices for warehousing premises have dropped by 20–25% in Vilnius, Kaunas, and Klaipėda, and the current level of rents has reached the level of 2003.<ref name="ober-haus1"/> The costs for renting new warehouses in Vilnius, Kaunas, and Klaipėda are similar and reach 0.75 to 1.42 EUR/m<sup>2</sup>, while the rents of old warehouses are 0.35 to 0.67 EUR/m<sup>2</sup>.

==International trade==

Lithuanian economy is highly open and [[International trade]] is crucial. As a result, the [[Trade-to-GDP ratio|ratio of foreign trade to GDP]] for Lithuania has often exceeded 100%.

The EU is the biggest trade partner of Lithuania with a 67% of total imports and 61.3% of total exports during 2015.<ref name="Stat.gov.lt">{{cite web|url=https://osp.stat.gov.lt/documents/10180/2691123/Imp_exp_2014_01_12_su_EUR.pdf|title=Eksportas, importas pagal valstybes|publisher=Statistics Lithuania|access-date=29 May 2015|url-status=live|archive-url=https://web.archive.org/web/20150529114321/https://osp.stat.gov.lt/documents/10180/2691123/Imp_exp_2014_01_12_su_EUR.pdf|archive-date=29 May 2015}}</ref> The [[Commonwealth of Independent States]] is the second economic union that Lithuania trades the most with, with a share of imports of 25% and a share of exports of 23.9% during the same period.<ref name="Stat.gov.lt"/> The vast majority of commodities, including oil, gas, and metals have to be imported, mainly from Russia, however in the recent years Lithuania's energy dependence has shifted towards other countries such as Norway and the US.
Mineral products constitute 25% of imports and 18% of exports, mainly driven by the presence of ''[[ORLEN Lietuva]]'' oil refinery with a refining capacity of 9 million tons a year, owned by Polish concern [[PKN Orlen]].<ref name="orlenlietuva1">{{cite web |url=http://www.orlenlietuva.lt/LT/Company/Reports/Documents/ORLEN%20Lietuva%202014%20consolidated%20Liet%20Final.pdf |title=Archived copy |access-date=29 May 2015 |url-status=live |archive-url=https://web.archive.org/web/20150529131757/http://www.orlenlietuva.lt/LT/Company/Reports/Documents/ORLEN%20Lietuva%202014%20consolidated%20Liet%20Final.pdf |archive-date=29 May 2015  }}</ref> ''Orlen Lietuva'' sold over €3.5 billion worth of products outside Lithuania,<ref name="orlenlietuva1"/> compared to the total Lithuanian exports of €24 billion in 2014.

Some sectors are directed mainly at export markets. Transport and logistics export ⅔ of their products and/or services; the [[biotechnology]] industry exports 80%; plastics export 52%; [[laser]] technologies export 86%; metal processing, machinery and electric equipment export 64%; furniture and [[wood processing]] export 55%; textile and clothing export 76%; and the food industry exports 36%.<ref>{{Cite web|url=http://www.lda.lt/files/File/Discover+Lithuania/BussinessPresentation/20090220/lithuaniagoforbusiness200902.pdf|title=Neegzistuoja - Serveriai.lt|website=www.lda.lt}}</ref>

{| class="wikitable"
|+ '''Foreign trade partners, January–December 2017'''<ref>{{cite web |title=In 2017, exports increased by 16.8%, imports – 15.5% in Lithuania |url=http://www.baltic-course.com/eng/good_for_business/?doc=140988 |website=baltic-course.com |access-date=24 November 2018}}</ref>
(structure of the statistics is highly affected by oil refinery ''ORLEN Lietuva'' importing and exporting
big amounts of oil products)
!Country
!Import
!Country
!Share of goods of Lithuanian origin in export
!Export
|-
| {{flagicon|EU}} EU
| 70.6%
| {{flagicon|EU}} EU
|69.6%
| 58.3%
|-
| {{flagicon|RUS}} Russia
| 12.6%
| {{flagicon|RUS}} Russia
|7.8%
| 14.8%
|-
| {{flagicon|GER}} Germany
| 12.3%
| {{flagicon|LVA}} Latvia
|44.6%
| 9.9%
|- 
| {{flagicon|POL}} Poland
| 10.7%
| {{flagicon|POL}} Poland
|65.7%
| 8.1%
|-
| {{flagicon|LVA}} Latvia
| 7.2%
| {{flagicon|GER}} Germany
|77.8%
| 7.3%
|-
| {{flagicon|ITA}} Italy
| 5.2%
| {{flagicon|USA}} United States
|89.1%
| 5.2%
|-
| {{flagicon|NED}} Netherlands
| 5.1%
| {{flagicon|EST}} Estonia
|48.4%
| 5.0%
|-
| {{flagicon|SWE}} Sweden
| 3.9%
| {{flagicon|SWE}} Sweden
|89.8%
| 4.8%
|-
| {{flagicon|FRA}} France
| 3.8%
| {{flagicon|Belarus}} Belarus
|13.8%
| 3.8%
|-
| {{flagicon|UK}} United Kingdom
| 3.3%
| {{flagicon|UK}} United Kingdom
|85.7%
| 3.5%
|-
| {{flagicon|BEL}} Belgium
| 3.3%
| {{flagicon|NED}} Netherlands
|82.5%
| 3.5%
|-
| {{flagicon|EST}} Estonia
| 3.2%
| {{flagicon|NOR}} Norway
|89.5%
| 2.8%
|}

===Foreign corporate taxpayers===
{| class="wikitable"
|+ '''Largest share of foreign corporate taxpayers, January–June 2023'''<ref>{{cite web |title=Užsienio juridinių asmenų mokesčių mokėtojų skaičius |url=https://stats.vmi.lt/lt/statistics/uzsienio-juridiniu-asmenu-mokesciu-moketoju-skaicius |publisher=VMI |access-date=18 July 2023 |language=lt}}</ref>
!Country
!Companies
!Share
|-
| {{flagicon|GER}} Germany
|70,667
| 30.0%
|-
| {{flagicon|POL}} Poland
|19,509
| 8.3%
|-
| {{flagicon|NED}} Netherlands
|17,027
| 7.2%
|-
| {{flagicon|ITA}} Italy
|15,903
| 6.7%
|-
| {{flagicon|UK}} United Kingdom
|15,754
| 6.7%
|-
| {{flagicon|FRA}} France
|11,017 
| 4.7%
|-
| {{flagicon|ESP}} Spain
|9,623
| 4.1%
|-
| {{flagicon|AUT}} Austria
|7,171
| 3.0%
|-
| {{flagicon|LVA}} Latvia
|6,961
| 3.0%
|- 
| {{flagicon|SWE}} Sweden
|6,632
| 2.8%
|- 
| {{flagicon|EST}} Estonia
|6,502
| 2.8%
|-
| {{flagicon|USA}} United States
|5,100
| 2.2%
|-
!Total
!235,902
! 100%
|}

==Natural resources==

The total value of [[natural resource]]s in Lithuania is around €17 billion, or around one  third of Lithuania's GDP. The most valuable natural resource in the country is subterranean water, which constitutes more than half of the total value of natural resources.

In 1990 Lithuania [[Petroleum industry in Lithuania|started petroleum production]] from onshore oil wells as a response to an energy source blockade imposed on Lithuania by [[Soviet Union]].<ref>[https://ve.lt/naujienos/ekonomika/ekonomikos-naujienos/minijos-nafta-vilkyciuose-grezia-nauja-grezini- "Minijos nafta" Vilkyčiuose gręžia naują gręžinį]</ref><ref name=lotos>[https://lotosgeonafta.pl/lt/2082/apie_mus/istorija LOTOS istorija]</ref><ref name= vle>[https://www.vle.lt/straipsnis/nafta/ VLE - Nafta]</ref> Since 2001 the yearly production declined as Lithuanian government no longer supports development of new oil wells and banned any development of offshore oil rigs.<ref>[https://www.delfi.lt/verslas/energetika/senkant-naftos-istekliams-jos-gavyba-lietuvoje-gali-buti-stabdoma-87835529 Senkant naftos ištekliams jos gavyba Lietuvoje gali būti stabdoma]</ref><ref>[https://www.15min.lt/verslas/naujiena/energetika/naftos-gavyba-lietuvoje-keli-metai-ir-is-zemes-pumpuosime-paskutinius-lasus-664-1660546 Naftos gavyba Lietuvoje: dar keleri metai ir iš žemės pumpuosime paskutinius lašus]</ref>

==Macro-economic==
The following table shows the main economic indicators in 2000–2020.<ref>{{cite web|title=Report for Selected Countries and Subjects|url=https://www.imf.org/en/Publications/WEO/weo-database/2020/October/weo-report?c=946,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,PCPIEPCH,LUR,GGXWDN_NGDP,GGXWDG_NGDP,&sy=2000&ey=2020&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|access-date=10 September 2018}}</ref>
{| class="wikitable" style="text-align: center;"
|-
!Year
!GDP in bln $<br /><small>(PPP)</small>
!GDP per capita in $<br /><small>(PPP)</small>
!GDP growth<br /><small>(real)</small>
!Inflation<br /><small>(in percent)</small>
!Unemployment rate<br /><small>(in percent)</small>
!Government debt<br /><small>(percentage of GDP)</small>
|-
|2000
|33.66
|9,618
|3.8%
|1.0%
|16.4%
|23%
|-
|2005
|{{Increase}}54.56
|{{Increase}}16,422
|{{Increase}}7.7%
|{{increaseNegative}}2.7%
|{{decreasePositive}}8.3%
|{{decreasePositive}}18%
|-
|2006
|{{Increase}}60.40
|{{Increase}}18,472
|{{Decrease}}7.4%
|{{increaseNegative}}3.8%
|{{decreasePositive}}5.8%
|{{decreasePositive}}17%
|-
|2007
|{{Increase}}68.89
|{{Increase}}21,319
|{{Increase}}11.1%
|{{increaseNegative}}5.8%
|{{decreasePositive}}4.2%
|{{decreasePositive}}16%
|-
|2008
|{{Increase}}72.08
|{{Increase}}22,539
|{{Decrease}}2.6%
|{{increaseNegative}}11.2%
|{{increaseNegative}}5.8%
|{{decreasePositive}}15%
|-
|2009
|{{Decrease}}61.87
|{{Decrease}}19,562
|{{Decrease}}−14.8%
|{{decreasePositive}}4.2%
|{{increaseNegative}}13.8%
|{{increaseNegative}}29%
|-
|2010
|{{Increase}}63.65
|{{Increase}}20,552
|{{Increase}}1.6%
|{{decreasePositive}}1.2%
|{{increaseNegative}}17.8%
|{{increaseNegative}}36%
|-
|2011
|{{Increase}}68.90
|{{Increase}}22,752
|{{Increase}}6.0%
|{{increaseNegative}}4.1%
|{{decreasePositive}}15.4%
|{{increaseNegative}}37%
|-
|2012
|{{Increase}}72.85
|{{Increase}}24,382
|{{Decrease}}3.8%
|{{decreasePositive}}3.2%
|{{decreasePositive}}13.4%
|{{increaseNegative}}40%
|-
|2013
|{{Increase}}76.72
|{{Increase}}25,904
|{{Decrease}}3.5%
|{{decreasePositive}}1.2%
|{{decreasePositive}}11.8%
|{{decreasePositive}}39%
|-
|2014
|{{Increase}}80.75
|{{Increase}}27,537
|{{Decrease}}3.5%
|{{decreasePositive}}0.2%
|{{decreasePositive}}10.7%
|{{increaseNegative}}41%
|-
|2015
|{{Increase}}83.29
|{{Increase}}28,671
|{{Decrease}}2.0%
|{{decreasePositive}}−0.7%
|{{increaseNegative}}9.1%
|{{increaseNegative}}43%
|-
|2016
|{{Increase}}86.33
|{{Increase}}30,097
|{{Increase}}2.3%
|{{increaseNegative}}0.7%
|{{decreasePositive}}7.9%
|{{decreasePositive}}40%
|-
|2017
|{{Increase}}91.24
|{{Increase}}32,298
|{{Increase}}3.8%
|{{increaseNegative}}3.7%
|{{decreasePositive}}7.1%
|{{decreasePositive}}39%
|-
|2018
|{{Increase}}101.05
|{{Increase}}36,239
|{{Decrease}}3.6%
|{{decreasePositive}}2.5%
|{{increaseNegative}}6.1%
|{{decreasePositive}}34%
|-
|2019
|{{Increase}}107.40
|{{Increase}}38,587
|{{Increase}}3.9%
|{{decreasePositive}}2.2%
|{{increaseNegative}}6.3%
|{{increaseNegative}}38%
|-
|2020
|{{Decrease}}106.913
|{{Increase}}38,605
|{{Decrease}}−1.8%
|{{decreasePositive}}1.2%
|{{increaseNegative}}8.2%
|{{increaseNegative}}48%
|-
|}

==See also==
*[[Economy of Europe]]
* '''''<small>{{portal-inline|Lithuania}}</small>'''''

==References==
{{Reflist|30em}}

==External links==
* [http://www.stat.gov.lt/en/ Lithuania's Department of Statistics]
* [https://www.lb.lt/en/lb-statistics Bank of Lithuania Statistics]
* [https://investlithuania.com/ Non-profit organization Invest Lithuania]
* [https://finmin.lrv.lt/uploads/finmin/documents/files/ERS%202017-03-20_paskelbtas_EN.pdf Lithuania’s Economic Outlook for 2017–2020]
* [https://osp.stat.gov.lt/en/pagrindiniai-salies-rodikliai Main Lithuanian indicators]
* [https://osp.stat.gov.lt/services-portlet/pub-edition-file?id=26780 Lithuania in figures 2017]

{{Lithuania topics}}
{{Economy of Europe}}
{{Organisation for Economic Co-operation and Development}}
{{World Trade Organization}}

{{StateDept
|url=https://2009-2017.state.gov/r/pa/ei/bgn/5379.htm
|title=Background Note: Lithuania
|author=Bureau of European and Eurasian Affairs
|access-date=17 October 2009}}

{{DEFAULTSORT:Economy of Lithuania}}
[[Category:Economy of Lithuania| ]]
[[Category:European Union member economies|Lithuania]]
[[Category:Economies of Europe by country|Lithuania]]
[[Category:OECD member economies|Lithuania]]
[[Category:World Trade Organization member economies|Lithuania]]
[[Category:Economies of Europe]]