SIGITAS BRAZINSKASLithuanian Development Agency

sigitas@lda.lthttp://WWW.LDA.LT

Lithuania: export

oriented economy

THE BALTIC SEA REGION A 100 MILLION PEOPLE MARKET POTENTIAL

PLUS ADJOINING MARKETS EAST & WEST

LITHUANIAN DEVELOPMENT AGENCY

THE LITHUANIAN ECONOMY 1998 1999 2000 2001 2002*

GDP Growth: 5.1% (4.1%) 3.3% 5.9% 5.2%

3rd Q 2002 – 6.6%

Inflation: 2.4% 0.3% 1.4% 2.1% 1.0%

Unemployment: 6.4% 8.4% 11.4% 10.7% 10.5%

Exports (€ bn): 4.3 3.5 4.4 5.3 6.0

Imports (€ bn): 6.7 5.6 6.3 7.3 8.2 FDI (cum. € bn): 2.3 2.8 3.1 3.4 3.8

Source: Lithuanian Department of Statistics*-forecast

LITHUANIAN DEVELOPMENT AGENCY

GDP – stable growth

• Growth by 6.6 % (IIIrd Q 2002) in:

Building industryTransportWarehouses Wholesale, retail

Source: department of Statistics

LITHUANIAN DEVELOPMENT AGENCY

LITHUANIA RAPIDLY BECOMINGAN EXPORT ECONOMY

Exports increase in year 2001 by 20%

EXPORTS AS % OF GDP:

• 1999 – 28%

• 2000 – 34%

• 2001 – 38% 21

LITHUANIAN DEVELOPMENT AGENCY

The Lithuania’s export performance, Y2001,bill. LTL, % of GDP

Source: Department of Statistics

%

LITHUANIAN DEVELOPMENT AGENCY

Growth in export, Y2001-2002, 8 months, thous. LTL

12034

12409

11800

11900

12000

12100

12200

12300

12400

12500

2001 2002

Source: Department of Statistics

LITHUANIAN DEVELOPMENT AGENCY

Lithuanian export structure, % Y2001

22

24

54

MP Reexport LT origin

Source: National Development Institute

LITHUANIAN DEVELOPMENT AGENCY

WHAT DO THESE FAMOUS COMPANIES

HAVE IN COMMON? • IBM

• MOTOROLA• TOSHIBA• SIEMENS• RENAULT• ADIDAS

• IKEA• VOLVO, SAAB, VW

• SAMSUNG• PHILIPS

• BENTLEY SYSTEMS

THEY ARE CUSTOMERS OF LITHUANIA22

Diversified industry, export oriented

PORT

LITHUANIAN DEVELOPMENT AGENCY

Opportunities in Lithuania furniture in Siauliai, Kaunas, Klaipedaelectronics in Panevezys (20 % European

market), Vilnius, Kaunas auto components in Klaipeda, Kaunasfertilizers in Jonava and Kedainiai (7 % of

world market)textile in Kaunas, Vilnius, Ukmerge food processing in Telsiai, Rokiskis,

Panevezys

LITHUANIAN DEVELOPMENT AGENCY

Investments, EUR Mill, 1st half 2002

0

50

100

150

200

250

300

350

400

450

500

Estonia Latvia Lithuania

Source: Bank of Finland, 11.10.2002

LITHUANIAN DEVELOPMENT AGENCY

CUMULATIVE FDI BY COUNTRY OF ORIGIN

(€ m, as of July 1, 2002)

579567

357336 335

209 193174

745

0

100

200

300

400

500

600

700

DEN SWE USA GER EST FIN UK RUS Other

Source: Lithuanian Department of StatisticsSource: Lithuanian Department of Statistics

LITHUANIAN DEVELOPMENT AGENCY

• Selection of production sites or buildings• Selection, introduction of Joint Venture

partners• Contacts with suppliers, building contractors,

government institutions • Information about operating costs, human

resources, incentives• Information about Free Economic Zones,

Industrial Parks• Liaison with relevant state and local authorities

LDA SERVICES

Source: Lithuanian Development Agency

TRAKAI CASTLE

THANK YOU AND

WELCOME TO LITHUANIA!