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| GDP per Capita: $2,895 GDP (USD Billions): 10.7 Currency: 1 Lithuanian litas = 100 centas USD Conversion Rate: 1 USD = 4.00180 LTL Internet Presence: 4.5% Population (Millions): 3.7 Unemployment: 9.1% Language: Lithuanian, Polish, Russian Major Industries: metal-cutting machine tools, electric motors, television sets, refrigerators and freezers, petroleum refining Political System: Parliamentary Democracy Economic System: Free Market Literacy Rate: 99% President: Valdas Adamkus/Prime Minister: Andrius Kubilius |
Lithuania
Lithuania has benefited from its disciplined approach to market reform and its adherence to strict fiscal and monetary policies imposed by the IMF, measures that have helped constrain the growth of the money supply, reduce inflation to 5.1%, and support GDP growth of 6% in 1997 and 4.5% in 1998. Foreign direct investment and the privatization program maintained their momentum in 1998. However, the current account deficit has hovered around 8% to 10% of GDP annually since 1995. the result of greater demand for consumer goods and falling growth in exports. Reducing this deficit is the immediate economic challenge for 1999.
Comment:
As a remnant of the Soviet era, Industry is Lithuania's largest economic sector. However, today - much of it is privatised or in the process of being privatised. Leading industries include: Food processing, light industry, furniture, footwear, textile, and machine industries (tools, motors, computers, and consumer durables). Investment opportunities have centered around manufacturing, trade, post and communications, and financial consulting.
