In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.
According to the Lithuanian Statistics Department, foreign direct investment dropped slightly in 2009 - due to the effect of the crisis - but FDI flows subsequently accelerated. Thanks to the improvement in the economic situation, FDI flows began to grow again the following year (+10% in 2010), reaching EUR 558 million. FDI stock remains mostly held by Scandinavian companies, shareholders of the major banking institutions in Lithuania, as well as by Germany and Poland. Sweden remains the country's main investor, particularly in the energy sector. FDI level in 2013 reached only USD 900 million. FDI stocks have remained stable since 2009 and experts seem optimistic regarding the future. Over the last year, the largest investments were made in manufacturing, financial and insurance and wholesale and retail trade.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Lithuania||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||7.0||7.0||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||5.7||5.9||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||1,448||700||531|
|FDI Stock (million USD)||14,266||16,033||17,049|
|Performance Index*, Ranking on 181 Economies||137||-||-|
|Potential Index**, Ranking on 177 Economies||65||-||-|
|Number of Greenfield Investments***||40||43||43|
|FDI Inwards (in % of GFCF****)||18.5||9.9||6.7|
|FDI Stock (in % of GDP)||33.1||37.9||35.8|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2015