Since 1990 when Lithuania declared its independence from the Soviet Union, there have been radical transformations in the country’s political, economic, and social life. Agriculture, services and industry sector have experienced significant changes which were largely encouraged by creating, re-establishing and developing relationships with the rest of the world. A lot of modifications, reforms, and improvements have been made in the Lithuanian legal, healthcare, communications, agricultural, environment protection, and finance systems in relation to its accession to the EU in 2004.
Lithuania, whose name was until recently little known to the world, now has got the name of ‘The Baltic Tiger’ because of its fast economic growth. During the last ten years Lithuania has become an open market economy and a dynamic competitive state. According to the Lithuanian Department of Statistics, growth in GDP during the last few years (7.3% in 2004; 7.6% in 2005; and 8.4% in 2006 second quarter) reflected impressive economic development.
The Lithuanian market offers favourbale investment environment. Among the attractions of Lithuania’s investment climate is a large and diversified economy, investment laws conforming to EU standards, a low corporate tax, excellent banking system, and a political regime with good foreign relations.
Strategically located in the gateway between the EU and the CIS with convenient land links and the only ice-free seaport in the Baltic States, Lithuania serves as a bridge between the East and the West, the North and the South. The country has a well-developed system of railways, airports and four-lane highways.
An educated and proficient workforce at a low cost is another reason to invest in Lithuania. The proportion of students as compared to the total population aged 20-24 in Lithuania is rather high (nearly 70%) and noticeably exceeds the EU average (about 56%). An important factor which encourages investment in Lithuania is the monthly salary, which is much lower here than the EU standard.
Attractive to foreign investors, Lithuania is one of the countries with the fastest rate of foreign investment in Eastern Europe. Foreign direct investment as of 1 July 2006 made up EUR 6.827 billion. Among other investors in Lithuania are companies such as Siemens, Motorola, Philips, Philip Morris, Carlsberg and others.
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