Lithuania is converging with European peers, despite suffering from high inflation in the post-Covid era. Benzinga points to wages doubling since the country joined the EU, while consumer prices are up about 40% over the same period. Appetite comes with eating, so competitiveness and focus on economic growth empower FDI.

The focus of the Ministry of Economy and Innovation is on easing economic crosscurrents through targeted stimulus and initiatives like FDI, as well as new global partnerships with the likes of Taiwan, which invested €3.5 million in Lithuanian laser technology.

With Lithuania growing richer on a GDP per capita basis (adjusted for purchasing power), citizens’ living standards are improving. Accordingly, economic and political stability are attracting investment: last year, Lithuania saw nearly 5,000 new jobs created and €135 million in green-field investment. Continental AG, PON Bicycle Holdings, Shift4 Payments Inc, Ryanair Holdings Plc, Free Alerts, and DriveWealth are among the firms taking an interest in the country.

Moreover, for the second year running, Vilnius claims the second spot in the mid-sized city category in the European Cities and Regions of the Future report. In the five years to November 2022, Vilnius drew more FDI projects than any other city in this year’s top 10 rankings, with software and IT services being the dominant sector. However, the city’s thriving life sciences sector has also attracted significant investment from Swiss drug developer Alpen Pharma, Thermo Fisher Scientific, and AI-driven women’s health platform Flo.

The city benefits from Lithuania is one of Europe’s most digitized countries with technologically advanced public e-services. Indeed, Vilnius is a top-three performer in this year’s Business Friendliness subcategory. It places second in Economic Potential and Human Capital and Lifestyle.