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Lithuania: The economy dependent on domestic demand

Lithuania: The economy dependent on domestic demand

In Lithuania, economic growth will remain moderate in 2016. GDP is forecast to grow by 3.2%. The economy suffers from sanctions against Russia and Russia’s counter-sanctions, which caused exports from Lithuania to Russia to decrease by 25% in the first half of 2015. The fall in exports has hit, for instance, the Lithuanian transport sector. The challenges facing Lithuania’s major trading partners are reflected in the country’s economy, making the situation precarious.

The economy is dependent on the growing domestic demand, which is boosted by decreasing prices and increasing income. Wages are expected to increase by 7%. In addition to the increase in private consumption, also companies and the public sector are investing in production equipment, apartments and other buildings.

Danguolė Augustinienė, Business Manager of CV Online Lithuania, says that investments in Lithuania by foreign companies could perk up recruitments in 2016. International companies are expected to move their operations—such as IT and phone service centres—to Lithuania, and to grow their operations in the country. However, there are not enough professional job applicants available, which results in an increase in wages. Finding good candidates requires using new recruitment channels, such as social media and various innovative solutions and campaigns, Danguolė says.

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