Economic situation in Lithuania

Choose Full Report to read the full analysis. Below we introduce you to the main figures.

Lithuania – a member country of European Union, Eurozone, NATO and EBPO – lies on the eastern coast of the Baltic Sea. It shares its border lines with Latvia, Poland (both – EU members), Belarus, and Russian exclave of Kaliningrad Oblast.

Since joining the EU and in 2004, Lithuania has been facing a rapid nominal growth of 6.0% annually (including the impact of inflation) or real growth of 2.7% in its economy.

Not only has it been developing rapidly on economic side, but on political and social as well. This rapid development let the country to be where it is now in 2018:

                                                       

                                                            

For more information about Lithuania’s business environment, please check a recent analysis made by Invest Lithuania. 

Klaipėda – a crossroad of trade routes

About Klaipėda

Klaipėda is the third largest city in Lithuania lying on the western side of Lithuania on the coast of the Baltic Sea. It is a regional business, education, culture, tourism and administration centre. Historically, the city was a very important crossroad for various trade routes, as it was the place where North met South and East met West. Such an importance remains nowadays as well as Klaipėda is an only seaport city of Lithuania, a country with an external boarder of European Union and Schengen area.

Klaipėda has a multipurpose, universal, deep-water ice-free port, providing high quality services which makes Klaipėda the most important and biggest Lithuanian transport hub, connecting sea, land and railway routes from East to West.

Continuous investment in the development of the port makes it the biggest EU seaport on the Eastern coast of the Baltic sea per cargo handled.

Moreover, Klaipėda was the first city among the three Baltic States where the Free Economic Zone (FEZ) was established in 2002. Since then, more than 100 companies started their operations there, including the leading companies in their industry - more than 600 million EUR has already been invested in the FEZ.

Population and Employment

 

                                       

Salary level

                                                        

Foreign Direct Investment

 

Enterprises in the region

                                                        

Places to invest in Klaipėda

With a current trend of city development, Klaipėda is looking forward to achieving its aims for Klaipėda 2030 strategy. However, not all of them are equally easy to achieve as population-driven targets (190,000 people in the city and 25,000 new workplaces by the end of 2030) seems to be the most challenging ones due to the number of people in Klaipėda being on a steady decline for the last 25 years. Therefore, an economic factors-triggered nudge may be the one which could turn the negative trend upside down. It should naturally come from private businesses, namely, new investments.

As a city with a direct access to the Baltic Sea, Klaipėda is an ideal place for setting up a high-scale business. First, Klaipėda Sea Port is rapidly developing, and with a current plan of constructing a new deep-water seaport, it is expected to demonstrate a sole leadership in the region. Moreover, even the most distant point in Europe can be reached in less than one week by the ship, providing Klaipėda with a competitive edge.

Moreover, the Free Economic Zone in Klaipėda plays a very important role in providing the best conditions for new businesses coming to the city. Last year alone it secured five awards, including one for Quick Launch opportunities, at the Global Free Zones of the Year 2017 rankings, published by Financial Times’ fDi Intelligence service annually since 2010. Klaipėda FEZ has been also recognized for its specialization in the plastics industry, contribution to the national economy, energy efficiency and expansion of its investors. Klaipėda FEZ became the first ever and the only free economic zone to receive the Quick Launch Award from fDi Intelligence.

Investors wishing to establish an operation in Lithuania’s Klaipėda FEZ can use the zone’s Fast Factory Launch scheme (FlexStart). The scheme offers companies sites complete with necessary construction permits, and the ability to make minor edits to customize the site to an investor’s needs. Outside of Klaipėda, construction permits in Lithuania can take anywhere up to six months. Additionally, the FlexStart programme aims to allow investors to start operations in less than one month, with customizable pre-built manufacturing facilities. New offices are currently under construction to be offered to SMEs as part of the programme.

Looking for a business location that bridges East and West? A city with one of the most profitable ice-free port in the EU, linking Scandinavia, the EU, the CIS and China. It’s time to discover Klaipėda. 

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