GDP of Lithuania: size and dynamics

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

Lithuania is one of the states of Northern Europe. Refers to the B altic countries. The capital is the city of Vilnius.

Lithuania is a very small country. Along the meridian, the distance from border to border is 280 km, and along the latitude - 370 km. The area of Lithuania is 65300 km². The number of inhabitants is about 3 million people. In the northwest, the country goes to the shores of the B altic Sea, occupying its eastern coast. The length of the coastline is 99 km. On the opposite side of the sea is Sweden. By land, Lithuania has the following borders: eastern (southeastern) - with Belarus, northern - with Latvia, western - with the Kaliningrad region, southwestern - with Poland.

Lithuania is a member of the United Nations (UN), the European Union (EU), NATO and also the OECD (since 2018).

Geographic features

The territory is flat. Slightly more than half of the area is occupied by treeless spaces (fields and meadows), in second place is forest and shrub vegetation (about a third of the total area). This is followed by swamps (6%) and the surface of water bodies (about 1%).

The climate is weakcontinental, with features of the sea. Winters are mild, with an average temperature of -5°C. Summer is not hot: its average temperature is only +17 degrees. The amount of precipitation is significant - 748 mm per year.

Mineral resources are represented by building materials, peat, minerals.

Population

Lithuania's population is rapidly declining. In 2015, it amounted to 2,898,062 people, and in 2018 - 2,810,564. The natural increase is negative. In addition, there is an outflow (emigration) of residents to the countries of Western Europe. Lithuania occupies one of the first places in the world in terms of problems of alcoholism among the population.

Lithuanian economy

The economic situation in Lithuania is generally quite favorable. A stable market economy is developing there. Characterized by a lack of resources, low inflation (1.2% per year), the use of the euro as the main currency.

Lithuanian industry is underdeveloped, which is explained by the low raw material base and development peculiarities as a minor EU member. Dairy production is of the greatest importance.

Exports and imports play a big role in the economy. Lithuania has long been a member of the World Trade Organization. The largest economic ties operate with the Russian Federation, although after 2014 their weight in the Lithuanian economy has significantly decreased.

Nominal GDP of Lithuania is about $55 billion (82nd in the world). The people do not live in poverty, but you cannot call them particularly rich either. Lithuanian GDP per capita (in nominalexpression) $19,534 per year. The number of economically active residents is 1.5 million. The unemployment rate is 7.5%. The average salary before taxes is $1,035 or €895 per month. After paying them, the figures are significantly less: $810 and €700 per month.

The share of industry in the formation of GDP is about 31 percent, and the share of agriculture is about 6%.

Dynamics of Lithuanian GDP and external debt

Following the collapse of the Soviet Union and until now, Lithuania's gross domestic product has changed many times. From the 89th to the 92nd years of the 20th century, the indicator fell immediately by 50%. In 1993, it was stable, after which there was a steady increase, up to the present. Until 2009, it was about 7% per year, and after that it slowed down and averaged 2-3% per year. In 2009, there was a rather significant decline - by 14.8% at once. Thus, the dynamics of Lithuanian GDP over the years shows a steady upward trend, but over the past 10 years it has noticeably decreased.

Lithuania's public debt is up to 40 percent of GDP. However, for European countries, this is not much. Countries such as Romania, Sweden, Bulgaria, Luxembourg, Estonia have lower public debt than Lithuania.

Energy

Lithuania produces little electricity, mostly importing it. The share of natural gas is approximately the same as that of petroleum products. There are also hydroelectric power stations. In recent years, as in many other EU countries, an alternativerenewable energy. Obviously, its share in the energy balance will grow, especially given the lack of its own raw material base.

Lithuania currently imports natural gas, oil and coal. With the exception of alternative energy, the cost of its production remains high due to the need to import raw materials and the closure of its own nuclear power plant.

Conclusion

Thus, Lithuania is a fairly successful country in economic terms with an average level of GDP per capita. The GDP indicator is gradually growing. A negative factor for the national economy is the lack of its own raw material base.