Lithuania‘s real GDP is expected to grow by 2% in 2024, supported by a strong increase in private consumption, continued investment growth and a gradual improvement in trade. In 2025, real GDP is expected to grow faster at 2.9% as the EU and eurozone economies gain momentum and trade picks up again. Inflation is forecast to slow significantly to 1.9% in 2024 as a result of the rapid decline in energy prices, before stabilising at 1.8% in 2025 as inflation in services eases. The general government deficit is projected to rise to 1.8% of GDP in 2024, mainly due to the increase in social spending, public sector wages and salaries and current transfers paid by the state. A further increase to 2.2 % is forecast for 2025.
As Lithuania’s economic projection is essentially geared towards Western Europe and the Baltic Sea region, the country’s most important trading partners remain its direct neighbours (Latvia, Poland) and Germany. The total volume of bilateral trade with Switzerland, which is very limited, remained at roughly the same level as in 2022. As in previous years, Switzerland had a negative trade balance with Lithuania, resulting in a trade deficit of EUR 64.46 million. Foreign direct investment (FDI) stocks in Lithuania increased by 10.98% in 2023 and came almost exclusively from EU countries (Germany, Sweden, Estonia and the Netherlands), the former EU member state United Kingdom (5th place) and the United States of America. The signing of the implementation agreement on the second Swiss contribution by the Swiss Ambassador and the Lithuanian Minister of Finance in May 2023 enabled new projects worth CHF 45.2 million to be implemented in the country.
Source: S-GE
RELEVANT INFORMATION AND CONTACTS
Market Information Switzerland Global Enterprise: Economic Report SECO
EDA: Travel Advice and Representatives
Invest Lithuania: The Lithuanian Investment Promotion Agency
Country Manager Lithuania at SEC: Oliver Bertschinger