Lithuania is a democracy with a unicameral Parliament. Executive power is in hands of the President, who is elected for five years. Latvia has joined both NATO and the European Union in the spring of 2004.
Economy of Lithuania
The condition of the Lithuanian economy remains stable. A high GDP growth rate is being maintained at the satisfactory level of 7.7% in the second quarter of 2007 (in comparison with the corresponding period of the previous year). Gross domestic product at current prices was €23,721.4 million.
The inflation rate has increased, mainly caused by the accession to the European Union. At the end of 2006, inflation reached the level of 4.5% and it was a significant rise since December 2004 when the result was 3%. The unemployment rate decreased to the level of 4.5% at the end of Q2 2007 as a consequence of its high growth rate and workforce migration. At the same time, average gross monthly salary averaged €529.4 (9.5% more than at the corresponding period of 2006 when it was €479.3).
Lithuania, Latvia and Estonia are planning to join the eurozone by the end of 2008.
Investment in Lithuania
The value of foreign direct investment in Lithuania as of 1 April 2007 made up €9.2 billion. The bulk of investment came from investors from Poland – 21.4%, Denmark - 12.5%, Sweden – 10.7%, Germany – 8.8%, Russia – 8.0%, Finland – 6.5% and Estonia – 5.6%. The biggest part of investment came from enterprises engaged in manufacturing - 38.3%, financial intermediation - 16.7%, transport, storage and communications - 13.7%, wholesale and retail trade - 10.0%, electricity, gas and water supply - 9.4%, real estate, rent and other business activities - 7.8%.
Foreign trade
According to the data provided by the Lithuanian Statistical office, at the end of 2006 the foreign trade tendency is optimistic. Exports have increased by 18.7% and import for around 23.5% in comparison with the same period of 2005.
The main part of exported goods - almost 25% - are mineral products. This product group displays the highest sale dynamics, reaching growth of even 144.4%. Similar sale dynamics is typical for machinery and the electrical machines product group.
Between January and July 2007 Lithuanian exports amounted to €7,100.8 million while import was €9,972.1 million.
Trade with European Union countries has significant importance for Lithuania, with 63% of exports and 62.5% of imports coming to or from those countries.
The main export partners are Russia - 12,7%, Latvia - 11%, Germany - 8.6%, Estonia - 6.5%, and Poland - 6.1%. Meanwhile, the main import partners are Russia - 24.4%, Germany - 14.9%, Poland - 9.5%, Latvia - 4.8%, Italy - 3.4% and Sweden - 3.3%.
Infrastructure and communication
The railway network in Lithuania is below par in terms of network length. There are less tracks (1,771 km) than in the smaller Latvia (2,303 km). However the road network’s total length is near the average in proportion to the area (it was nearly 80,000 km in 2006).
In 2006 in Lithuania there was over 4.71 million mobile phone users and over 1,221,700 internet users.
Natural resources are: peat and arable land. Main industries: metal-cutting machine tools, electric motors, television sets, refrigerators and freezers, petroleum refining, shipbuilding (small ships), furniture making, textiles, food processing, fertilizers, agricultural machinery, optical equipment, electronic components, computers and amber.
GENERAL DATA
Area: 65,200 sq km
Population: 3.6 million
Capital city: Vilnius
Language: Lithuanian (official), Polish
Ethnic groups: Lithuanian 83.6%, Polish 6.3%, Russian 5.1%, Belarusian 1.1%, other 3.9%
Land boundaries: Belarus, Latvia, Poland, Russia
MACRO DATA
GDP (real growth): 7.7%
GDP (PPP): € 23,740.6 million
GDP per capita: € 6,594.6
Inflation: 3.8%
Unemployment: 5.6%
Export: € 11.24 billion f.o.b.
Import: € 15.37 billion f.o.b.
* 2006 est. source: Eurostat
USEFUL DATA
Currency: litas (LTL)
Exchange rate
(2006 avg.): €/LTL 3.4528
Time zone: GMT +2
Area code: +370
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