‘Lithuania’s growth engine shifts to services’

Lithuania’s economy is undergoing a structural shift, with services exports now matching goods exports for the first time. Even as growth remains resilient, inflation, energy dependence and geopolitical risks continue to shape the outlook, Greta Ilekyte, senior economist at Swedbank tells Kshipra Petkar.

- Kshipra Petkar

How would you describe Lithuania’s economic journey since it regained independence in 1991?

When Lithuania regained independence from Soviet rule, it was one of the poorest economies in Europe. GDP per capita and incomes were among the lowest in the region. Over the past three decades, the transformation has been substantial. Lithuania joined the European Union in 2004, NATO in 2005, and later adopted the euro. Today, GDP per capita adjusted for purchasing power is close to the EU average. Wages have grown around 10% annually over the past decade. The economy has shifted from low-cost manufacturing toward higher value-added services.

What does this structural shift look like now?