The Jurisdiction in detail
Like most of the countries which regained their independence following the collapse of the USSR, Lithuania turned to free trade and the market economy, avoiding State intervention as far as possible. This initiative notably resulted in the privatization of many companies and high growth (8%).
However, the crisis of 2008 put an end to this trend by plunging the country into recession, although less markedly than in the other Baltic States. Thanks to a diverse industrial sector and a better protected banking system, the Lithuanian economy was able to withstand the shock and recover gradually, helped by the European Union. It is estimated that the country’s economy will grow at 3.6% in 2013.
Services dominate the economy, representing nearly 60% of GDP, and the most important sectors are information and communication. Industry is also strong, with 30% of GDP, with dynamic sectors such as chemicals, electronics, metallurgy, appliances, agri-food and textiles. Next comes agriculture, which still employs 7.7% of the workforce and which mainly produces wheat, barley, potatoes, beet and meat.
Lithuania trades mainly with Russia (on which it is dependent for its gas imports), Latvia, Germany and Poland. The country mainly exports minerals, electrical equipment, plastic and biotechnology.
Advantages of relocating:
- The economy of the country is diverse
- Skilled workforce
- The tax is low
- Good road network
- Proximity to Russia and eastern Europe
- Low standard of living, therefore low commodity prices
- High level of migration of residents abroad
- Wage inflation
- Corrupt and slow administration
It is very easy to invest in Lithuania and the country makes no distinction between Lithuanian and foreign companies.