LITHUANIA

The largest of the three Baltic republics of the former Soviet Union The biggest economy among the Baltic states, generating roughly half of this region’s GDP Most diversified industry in the Baltics Total area: 65,200 sq km (slightly larger than Belgium, Denmark, the Netherlands, Switzerland or West Virginia) Population:  3.39 million Government type: Parliamentary democracy Administrative division: 10 counties (called „apskritys“) Capital + other major cities: Vilnius (600,000) + Kaunas (400,000), Klaipeda (200,000) Currency: litas (LTL) Languages: Lithuanian (official) 82%, Russian 8%, Polish 5.6%, other and unspecified 4.4% Ethnicity: Lithuanian 83.4%, Polish 6.7%, Russian 6.3%, other or unspecified 3.6% Religion: Roman Catholic 79%, Russian Orthodox 4.1%, Protestant (including Lutheran and Evangelical Christian Baptist) 1.9%, other or unspecified 5.5%, none 9.5% President: (Mr.) Dalia Grybauskaite (since 12 July 2009) Prime Minister: (Mr.) Andrius Kubilius (since 27 November 2008) Date of EU accession: 1 May 2004

MACROECONOMIC OVERVIEW

Prior to 2009, Lithuania belonged to one of the fastest growing economies in Central and Eastern Europe, with the private sector producing more than 80% of the country's GDP. Strong real GDP growth rates were driven mainly by strong domestic consumption as well as investments.

Over the past few years, Lithuania has become an attractive location for foreign investors and a competitive centre for product sourcing in the Baltic region due to its impressive economic growth, stable currency, and attractive incentives offered to investors in the form of Lithuania’s Free Economic Zones and Industrial Parks.

Lithuania also benefits from its geographic location, namely its proximity to both the EU and CIS markets, which is advantageous for transit flows. Klaipeda seaport, the most northern ice-free port of the Eastern coast of the Baltic Sea connecting sea, land, and railway routes from East to West, allows for handling of 20 to 25 million tons of cargo annually.

Unfortunately, Lithuania’s sound economic growth has not translated into improvements in quality of life as large discrepancies still remain between cities and rural areas. Only roughly a third of Lithuanians make enough to be able to save money. Many young educated people consider leaving Lithuania to work abroad; in fact, since 1990 over 1 million of people have left. This leads to some sectors such as construction and HORECA lacking qualified work force, which creates barriers for their further growth.

Source: Eurostat, 2011; * 2011 data - forecast

STRUCTURE OF ECONOMY	KEY SECTORS
Source: CIA, The World Factbook, 2009	Source: Ministry of Foreign Affairs of the Czech Republic

KEY SECTORS

Lithuania's well-developed industrial base includes the wood processing, chemicals, machine tools, metal processing, construction materials, biotechnology, food processing as well as light industries, including the manufacture of textiles, clothing, furniture and household appliances. Lithuania’s industry is well complemented by strong transportation and service sectors.

Manufacturing, construction, transportation, financial intermediation, and real estate ranked among the fastest growing sectors in the economy of Lithuania.