Economy
Economic overview:
Since declaring independence in 1990, Lithuania has implemented reforms aimed at eliminating the vestiges of the former socialist system. With the help of the IMF and other international institutions, the government has adopted a disciplined program to restrain inflation, reduce price controls, lower the budget deficit and privatize the economy. Lithuania has embarked on a series of price liberalizations; most price controls have been abolished. More than two-thirds of its industrial facilities as well as most housing and agricultural enterprises have been privatized, although important "strategic" enterprises have been exempted from privatization - namely energy and telecommunications. While Lithuania has reduced its trade dependence on Russia and other republics of the FSU from 85% in 1991 to about 40% in 1995, Russia remains Lithuania's leading trading partner. Lithuania has made great strides in reducing its annual rate of inflation - from over 1,100% in 1992 to about 35% in 1995. Production bottomed out in 1994-95. A banking crisis beginning in September, during which central bank reserves dropped one-third, held back growth in 1995. If the government can stay the course on economic reform and fiscal discipline - which may be politically difficult in the election year of 1996 - Lithuania could be set for strong economic growth in the near term. As for real resources, Lithuania's growth depends largely on its ability to exploit its strategic location - with its ice-free port at Klaipeda and its rail and highway hub in Vilnius connecting it with Eastern Europe, Belarus, Russia, and Ukraine. Lacking important natural resources, it will remain dependent on imports of fuels and raw materials.
GDP:
purchasing power parity - $13.3 billion (1995 estimate as extrapolated from World Bank estimate for 1994)
GDP real growth rate:
1% (1995 est.)
GDP per capita:
$3,400 (1995 est.)
GDP composition by sector:
agriculture:
20%
industry:
42%
services:
38% (1993 est.)
Inflation rate (consumer prices):
35% (1995 est.)
Labor force:
1.836 million
by occupation:
industry and construction 42%, agriculture and forestry 18%, other 40% (1990)
Unemployment rate:
6.1% (January 1996)
Budget:
revenues:
$NA
expenditures:
$NA, including capital expenditures of $NA
Industries:
metal-cutting machine tools, electric motors, television sets, refrigerators and freezers, petroleum refining, shipbuilding (small ships), furniture making, textiles, food processing, fertilizers, agricultural machinery, optical equipment, electronic components, computers, amber
Industrial production growth rate:
NA%
Electricity:
capacity:
6,190,000 kW
production:
18.9 billion kWh
consumption per capita:
4,608 kWh (1993)
Agriculture:
grain, potatoes, sugar beets, vegetables; meat, milk, eggs; fish
Illicit drugs:
transshipment point for illicit drugs from Central and Southwest Asia and Latin America to Western Europe; limited producer of illicit opium; mostly for domestic consumption
Exports:
$2.2 billion (1994)
commodities:
electronics 18%, food 10%, chemicals 6%, petroleum products 5% (1989)
partners:
Russia, Ukraine, Germany
Imports:
$2.7 billion (1994)
commodities:
oil 24%, machinery 14%, chemicals 8%, grain NA% (1989)
partners:
Russia, Germany, Belarus
External debt:
$895 million
Economic aid:
recipient:
ODA, $144 million (1993)
note:
commitments from the West and international financial institutions, $765 million (1992-95)
Currency:
introduced the convertible litas in June 1993
Exchange rates:
litai per US$1 - 4.000 (January 1996), 4.000 (1995), 3.978 (1994), 4.344 (1993), 1.773 (1992); note - fixed rate since 1 May 1994
Fiscal year:
calendar year
