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Last update: 29.06.2009


LITHUANIA


Area: 65,200 sq. km.
Capital city: Vilnius (pop. 542.809, in 2008)
Population: 3,366,200 (2008)
Annual growth rate: -0.5% (2007)
Languages: Lithuanian (official language) (84.6%), Russian 8%, Polish 5.6%, other 4.4%
Literacy: 99.6%
Government type: Parliamentary democracy
General government budget (2008): $9.9 billion
Neighboring countries: Poland, Belarus, Russia, Latvia,
Memberships: UN, EU, NATO, OSCE, COE, EAPC, WTO, CBSS
Currency: Litas / LTL 3.4528 to EUR 1


ECONOMY

GDP: $ 47,3 billion (2008)
Annual growth rate: 3,0% (2008), 8.7% (2007)
GDP (PPP): $59.98 billion (2007 est.)
GDP - per capita (PPP): $16,800 (2007 est.)
GDP - composition by sector: agriculture: 5.3%, industry: 33.3%, services: 61.4% (2007 est.)
Major 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, amber jewelry
Inflation: 10.9% (November 2008)
Unemployment: 11,9 % (2009, 1st quarter)
Labor force: 1.59 million: services 61,3 %; industry 30,3%; agriculture 8,4 % (2008)
Trade Exports: $21.3 billion (January-December 2008): mineral products 25.0%, machinery and mechanical appliances 10.6%, chemicals 10%, vehicles and transport equipment 8.6%
Imports: $27.9 billion (January-December 2008): mineral products 29.7%, machinery and equipment 14.2%, transportation equipment 12.5%
Major export partners: EU 60.2%, CIS 25.8%
Major import partners: EU 57.3%, CIS 34.1%

FDI: EUR 10 billion (Jan, 2008)
FDI abroad: EUR 1.1 billion (Jan, 2008)

The last few years have been good for the Lithuanian economy. Gross domestic product rose by 7.6% in 2005 and 7.4% in 2006. In 2007, Lithuania's GDP grew by 8.9%. GDP is predicted to grow between 3% and 5% for 2008, with recession predicted for 2009. Economic growth was largely driven by private consumption. Lithuania's economy began to slow before worldwide financial turmoil developed in 2008, and the eventual effect of this turmoil upon the Lithuanian economy is not yet clear. The contribution of domestic market-oriented sectors has also increased. Growth in 2007 was strongest in construction, retail and wholesale trade, processing and light industries, and agriculture. In 2007, annual average inflation reached 5.8%, and the government's budget deficit stood at approximately 0.5% of GDP. The government budget deficit is predicted to be 2.35% of GDP for 2008. In 2008, inflation reached 11% in September, one of the highest levels in the EU. Construction activity decreased markedly in 2008, with this sector and real estate experiencing the brunt of the economic slowdown. Real estate prices dropped by approximately 20% compared to 2007. Greater development is needed in public policy and further progress in structural and agricultural reforms.


TARGET SECTORS

• ICT
• Lasers
• Biotech
• Plastics
• Machinery & electrical equipment
• Metal processing & transport equipment manufacture
• Furniture & wood processing
• Textile & apparel
• Food
• Services
• Real estate

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