Lithuania is resilient, but it’s time to fight inflation
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
In March the deficit in the CAB was up by 2.6 times due to an increase in the foreign trade deficit. The annual inflation growth rate stands at 15.6%.
Lithuania’s Independence, a so-called Floating Storage Regasification Unit, offers a case study for those looking to pivot away from Russian gas.
In Lithuania, the inflation rate reached around 11% in early 2022, and heating bills are expected to increase by 50% to 60%.
NATO’s Achilles heel in the Russia-Ukraine war. Beware of Kaliningrad, Russia outside Russia, a crossing point between Europe and the three Baltic countries.
Last December the surplus on the CAB contracted to €66.5 million due to a significant widening of the foreign trade deficit.
Lithuanian export of goods rose more rapidly than imports. The largest share of FDI was attracted by companies in financial and insurance activities.
Last October the CAB surplus went up to €349.0 million. The primary income balance turned to surplus due to agricultural subsidies from the EU.
Vilnius defended its right to expand cooperation with Taiwan, with huge potential for cooperation in semiconductors, lasers, and fintech.
Vilnius has achieved considerable results in energy supply from renewables, recycling and composting. However, emissions have increased by 50% since 2005.