Last updated in September 2021.

Economic fundamentals proved resilient during the Covid-19 crisis

A1

Low RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in September 2021.

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GDP USD33.51bn (World ranking 98, World Bank 2020)
Population 1.90mn (World ranking 149, World Bank 2020)
Form of state Parliamentary republic
Head of government Krisjanis KARINS  (Prime Minister)
Next elections October 2022, legislative
  • Low systemic political risk
  • Good international relations
  • Competitive business environment
  • Eurozone membership provides for low transfer and convertibility risk
  • Adequate public finances and access to international capital markets
  • Small industrial base
  • Low R&D spending (0.6% of GDP in 2018) relative to OECD average (2.4% of GDP in 2018)
  • Unfavorable export structure, largely dependent on Russia (geopolitical risk) and other Baltic States
  • Banking sector remains vulnerable due to the high level of (volatile) non-resident deposits
  • Regional inequalities and mismatch in labor markets (between workers and jobs)

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
Lithuania 16.4%
1
17.9% Lithuania
Estonia 11.7%
2
10.4% Germany
Russian Federation 8.5%
3
10.2% Poland
Germany 7.3%
4
8.5% Estonia
United Kingdom 5.7%
5
6.1% Russian Federation

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Cork and wood 10.4%
1
6.7% Telecommunication and sound recording apparatus
Telecommunication and sound recording apparatus 8.3%
2
6.2% Road vehicles
Cereals and cereal preparations 5.9%
3
5.3% Electrical machinery, apparatus and appliances, n.e.s.
Cork and wood manufactures (excluding furniture) 5.7%
4
4.3% Medicinal and pharmaceutical products
Beverages 4.3%
5
4.1% Petroleum, petroleum products and related materials
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