Lithuania

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Lithuania became an independent state in 1990. Since then, it has gradually moved from a centrally planned economy to a free market economy. After its independence, the country started a process of privatization aimed at liberalizing the economy. For the last couple of years, the economy has been experiencing strong growth and is potentially very attractive. The GDP growth rate was 7.6% in 2005, 7.5 in 2006 and 8.0% in 2007. It is expected that Lithuania will have the strongest economic development between Baltic states. Private consumption and foreign investments are mainly driving the economic growth. It should be noted that Lithuania receives a quite substantial amount of financial support from the European Union which is also a good opportunity to modernize the country's different sectors.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	30.08	38.89	47.30e	40.36	39.41e
GDP (constant prices, annual % change)	7.8	8.9	3.0e	-10.0	-3.0e
GDP per capita (USD)	8,863	11,520	14,086e	12,092e	11,880
Inflation rate (%)	3.8	5.8	11.1e	5.1e	0.6
Unemployment rate (% of the labor force)	-	-	5.7	-	-
Current Account (billions USD)	-3.22	-5.69	-5.48e	-1.60e	-2.10
Current Account (in % of GDP)	-10.7	-14.6	-11.6e	-4.0e	-5.3e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The main industrial sectors of Lithuania are: electronics, chemicals, machine tooling, metal processing, construction materials, food processing and light industry, including the manufacturing of textiles, clothing, furniture and household appliances.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	14.0	29.1	56.9
Value added (in % of GDP)	5.2	33.3	61.5
Value added (annual % change)	13.2	7.4	9.1

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Lithuanian Litus (LTL) - Average annual exchange rate for 1 USD	2.78	2.77	2.75	2.52	2.36

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 70/100
Position:: moderately free
World Rank:: 30 out of 179
Regional Rank:: 17 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

In 2007, Lithuanian exports and imports were worth 12.5 billion EUR and 17.8 billion EUR respectively. In 2007, the volume of exports and imports rose by 11.2% and 14.5% respectively in comparison with 2006. Therefore, Lithuanian foreign trade is in deficit as imports are greater than exports. In 2007, Russia was Lithuania's main export partner. Other equally significant trade partners are Latvia, Germany and Poland. The majority of exports went to European Union member countries. The top import partners are: Russia, Germany, Poland, the Netherlands, Latvia. The country mainly imports mineral fuels & oils, vehicles, electric & electronic equipment, and plastics.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	9,362	11,689	14,690	18,360	23,036
Exports of goods (millions USD)	7,658	9,306	11,774	14,151	17,162
Imports of services (millions USD)	1,264	1,632	2,055	2,540	3,393
Exports of services (millions USD)	1,878	2,444	3,104	3,623	4,025
Imports of goods and services (annual % change)	10.4	14.9	17.2	13.8	9.1
Exports of goods and services (annual % change)	6.9	4.4	17.7	12.2	4.7
Imports of goods and services (in % of GDP)	57.1	59.2	65.4	70.1	67.4
Exports of goods and services (in % of GDP)	51.3	52.1	58.1	59.7	55.4
Trade Balance (millions USD)	-1,704	-2,383	-2,916	-4,209	-5,874
Trade Balance (including service) (millions USD)	-1,090	-1,570	-1,866	-3,126	-5,242
Foreign trade (in % of GDP)	108.4	111.4	123.4	129.8	122.7

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Russia	16.0%
Latvia	11.6%
Germany	7.2%
Poland	5.8%
Estonia	5.7%
France	4.9%
United Kingdom	4.7%
Denmark	4.7%
Belarus	4.5%
Sweden	3.4%
Netherlands	3.4%
Ukraine	3.3%
United States	3.2%
Norway	2.1%
India	1.7%
Spain	1.6%
Belgium	1.6%
Italy	1.6%
Finland	1.3%
Canada	1.3%
See more countries	53.7%

Main suppliers (% of imports)	2008
Russia	30.2%
Germany	11.7%
Poland	10.0%
Latvia	5.2%
Netherlands	3.6%
Italy	3.5%
Sweden	3.0%
Estonia	2.9%
France	2.8%
China	2.6%
Belgium	2.4%
Denmark	2.1%
Finland	2.1%
United Kingdom	1.9%
United States	1.8%
Belarus	1.7%
Czech Republic	1.5%
Spain	1.4%
Ukraine	1.4%
Austria	0.9%
See more countries	39.3%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	24.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	6.9%
FertilizersFertilizers	6.4%
Plastics and articles thereofPlastics and articles thereof	5.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	5.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	4.9%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	4.7%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	3.0%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	2.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.2%
Iron and steelIron and steel	2.1%
CerealsCereals	2.0%
Articles of iron or steelArticles of iron or steel	1.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.7%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.1%
Ships, boats and floating structuresShips, boats and floating structures	0.9%
Pharmaceutical productsPharmaceutical products	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.9%
Meat and edible meat offalMeat and edible meat offal	0.8%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.7%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.7%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.6%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.5%
Live animalsLive animals	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.4%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.4%
Rubber and articles thereofRubber and articles thereof	0.3%
Glass and glasswareGlass and glassware	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Man-made filamentsMan-made filaments	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Aluminium and articles thereofAluminium and articles thereof	0.3%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Other vegetable textile fibres; paper yarn and...Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Organic chemicalsOrganic chemicals	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Furskins and artificial fur; manufactures thereofFurskins and artificial fur; manufactures thereof	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Ceramic productsCeramic products	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
CottonCotton	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
See more products	50.7%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	27.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	7.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.2%
Plastics and articles thereofPlastics and articles thereof	3.4%
Iron and steelIron and steel	2.5%
Pharmaceutical productsPharmaceutical products	2.4%
Organic chemicalsOrganic chemicals	2.3%
Articles of iron or steelArticles of iron or steel	2.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.9%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.7%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Meat and edible meat offalMeat and edible meat offal	1.0%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.9%
FertilizersFertilizers	0.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.8%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.8%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.8%
Rubber and articles thereofRubber and articles thereof	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Glass and glasswareGlass and glassware	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Ceramic productsCeramic products	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
CerealsCereals	0.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
CottonCotton	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Man-made filamentsMan-made filaments	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
Live animalsLive animals	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
See more products	44.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economy
Ministry of Finances
Statistical Office: Department of Statistics
Central Bank: Central Bank of Lithuania
Stock Exchange: Nordic Exchange
Search Engines: Google
Search.lt
List Lithuania
Lithuania on line
Economic portals: The Baltic Times

Political outline

Executive Power: The President is the chief of state and is elected by popular vote for a five-year term. He/she is also commander in chief overseeing foreign and security policy. The Prime Minister is the head of the government and is appointed by the President on approval of the Parliament (generally leader of the majority party or coalition) to serve a term of four years. The Prime Minister enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is appointed by the President on the nomination of the Prime Minister.
Legislative Power: The legislature is unicameral in Lithuania. The Parliament (called Seimas) has a single chamber and consists of 141 seats. Members of the Parliament are elected using a mixed system combining proportional and single constituencies; this means that 71 members are directly elected by popular vote, 70 are elected by proportional representation; all members serve four-year terms. A party must receive at least 5% of the national vote to be represented in the Seimas. The Prime Minister cannot dissolve the Parliament (but President can do so on recommendation of the Parliament) nor can veto its enactment .
Main political parties: Lithuania has a multi-party system in which a single party does not have the chance of gaining power alone. So parties work with each other to form coalition governments. Some of the major parties in the country are:
- LSDP (Social Democratic Party of Lithuania) – advocates social democracy, has communist background.
- VNDS (Peasants and New Democratic Party Union) - an agrarian-conservative political party.
- TS (Homeland Union) – a right-wing conservative political party.
- DP (Labour Party) – advocates globalization and free-market economy in entire Europe; centrist.
- Liberal Democratic Party – a right-of-centre political party.
Current political leaders: President: Valdas ADAMKUS since July 2004 (re-elected in May 2009) – non-partisan
Prime Minister: Andrius KUBILIUS (since 27 November 2008)
Next election dates: Presidential: May 2014
Parliamentary: October 2012 (last elections held in 2008)

Indicator of freedom of the press

World Rank:: 16/173
Evolution:: 7 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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