GDP

The expansion of Lithuanian economy has been very dynamic with growth rates being among the highest ones in the Europe for the last few years. In 2007 GDP went up by 8,7 % as compared to the year 2006, and amounted to EUR 28 bn. Main contributors to such growth rates were investment flows, domestic demand and export growth. Real GDP per capita amounted to EUR 8292 in 2007.

In 2008 the growth of GDP decreased to 2.9 % (in November). In III quarter 2008, a slower increase in the value added was observed in most economic activities. The slowest growth in the value added – by just 0.1 per cent – was observed in manufacturing which generated almost one-fifth (19.0 per cent) of the gross value added.

Trade

In January–October 2008 exports totalled EUR 13.8 billion in terms of commodity value, while imports to Lithuania equalled EUR 18.0 billion. The foreign trade deficit of Lithuania made EUR 4.1 billion and was by 3.8 per cent lower than during the same period in 2007. In January–October 2008 against January–October 2007, exports and imports increased by 32.8 and 22.1 per cent respectively.

In January–October 2008, the most important partners in exports were Russia (15.6 per cent), Latvia (11.6 per cent), Germany (7.3 per cent) and Estonia (5.8 per cent). The most significant partners in imports were Russia (30.6 per cent), Germany (11.8 per cent), Poland (10.1 per cent) and Latvia (5.2 per cent).

In January–October 2008, the bulk of Lithuania’s exports fell within mineral products (25.7 per cent), machinery and mechanical appliances, electrical equipment (10.5 per cent), products of the chemical or allied industries (9.9 per cent). The most significant share in imports fell within mineral products (30 per cent), machinery and mechanical appliances, electrical equipment (14.2 per cent), and vehicles, aircraft, vessels and associated transport equipment (12.4 per cent).

Inflation

The growth of domestic consumption accelerated price growth and inflation. In November 2008 annual inflation rate hit 10.9 %.

Unemployment

Unemployment rate from 17,4% in 2001 decreased to 3.9% in 2007. In III quarter 2008 unemployment reached 5.9 %.

Debt

In 2007 public debt comprised 20,7 % of GDP and remain on of the lowest in the EU.

Investment

As of 1 July 2008 foreign direct investment (FDI) made EUR 10.02 billion, or by 0.6 % more than as of 1 April 2008. The per capita FDI equalled EUR 3 thousand.

The bulk of investment fell within investors from Sweden – 14.1 % of the total FDI, Poland – 12.9 %, Denmark – 11.1 %, Russia– 10.3%, Germany – 8.7 %, Estonia – 6.7 %, Latvia – 5.1 %, Finland – 5.0 %, the Netherlands – 4.5 %.Direct investment from EU-27 countries made 78.4 % of the total FDI), from CIS countries – 10.9 %.

As of 1 July 2008, the bulk of investment fell within manufacturing – 33.0 per cent (of which manufacture of oil and chemical products – 20.0 per cent), financial intermediation – 16.9 per cent, transport, storage and communication – 13.4 per cent, wholesale and retail trade – 11.6 per cent, real estate, rent and other business activities – 9.7 per cent, electricity, gas and water supply – 8.0 per cent of the total FDI.

As of 1 July 2008, direct investment of Lithuanian enterprises abroad made EUR 1.35 billion, or by 6.9 per cent more than on 1 April 2008. The bulk – 26.1 % of the total direct investment abroad – was invested in Latvia, while in Russia – 11.0 %, the Netherlands – 8.7 %, Poland – 8,7 %, Ukraine – 8.2%, Bulgaria – 7.4 %, United Kingdom – 7.1%.

Lithuania’s Credit Ratings

For more information, please visit:

http://www.stat.gov.lt/,

http://www.finmin.lt/,

http://www.lb.lt/