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Lithuania, transforming from a central state economy to a democratic member of the European Union and NATO with a stable free market, has shown the most dynamic growth in Europe over the last five to six years.

The International Monetary Fund IMF recently observed that Lithuania’s performance during the past five years ranks among the best in the EU. Lithuania maintains exceptional economic progress, based on macrostability and economic flexibility.

The IMF has reported that a flexible product and labor market as well as the strong international trade have laid the foundations for Lithuania’s success.

Lithuania has maintained GDP growth of between 6 percent and 10 percent annually. In 2006 Lithuania’s GDP increased by 7.4%. According to Eurostat, Lithuania’s foreign trade growth of 31 percent in imports and exports was one of the most successful in the EU in the first half of 2006.

The analysis by KPMG has showed that Lithuanian producers are the most profitable among the Baltic States and exceed the average profitability of the producers of Central Europe. The research revealed that Lithuanian companies grow fastest among the Baltics, and exceed the average productivity growth of Central European companies and are more active in entering new markets. The expert opinion prevails that Lithuanian companies work very profitably because their business is very specialized and they hold very strong positions in the area of their activity.

For example, 14 of the top 20 Baltic IT companies are Lithuanian. Lithuanian IT solutions and products have received high awards in different international competitions.

“Today the immense IT potential of Lithuania exceeds all expectations. Lithuania is going to become a guiding star for the whole region of Central and Eastern Europe,” Cisco systems vice president for Central and Eastern Europe said during the “Cisco Expo 2006”.

  Also, Lithuania is often singled out among the region’s countries as an absolute leader in biotechnology. Lithuanian biotechnology specialists have established a name in different markets all over the world with their genetic engineering pharmaceutical production as well as biochemical and chemical agents for genetic engineering.

Laser technologies and devices produced in Lithuania are exported to nearly a hundred countries. Lithuania supplies over half of the world market for high-energy picosecond lasers as well as lead global production in ultrafast parametric light generators. Lithuanian laser scientists have created unique devices: a picosecond laser spectrometer for selective activation and probing, a device for measuring the thickness and profile of unfinished glass for TV picture tube screens, a medical laser scalpel, etc.

  Furthermore, for decades Lithuania has been the centre of high-tech production for the military, outer space, and consumer electronics industries. Today demanding electronics giants such as Philips and Samsung outsource major components in Lithuania.

Lithuanian metal processing and transport equipment companies are suppliers for VW, Volvo, SAAB, Renault, other world-known companies demanding top value and just-in-time production. Lithuanian companies in the transport component manufacturing industry design, research and manufacture new products, for example, gas (LPG) equipment for motor vehicles, speed controllers, cable harnesses, ventilators, etc. About 60 percent of production is exported.

Finally, Lithuania’s plastics manufacturers were some of the first in Eastern Europe to start producing multiple layer PET packaging - today Lithuania’s export-oriented plastics industry is becoming a leader in the region.

By TITAS ANUSKEVICIUS
Lithuanian Development Agency