National economy of Lithuania - industries, GDP and prosperity level

Lithuania is considered a Republic with an industrial agrarian economy. The development of industry plays the dominant role in the economy as the profit from Industrial activities contribute to more than half of the Country’s total Gross Domestic Product. Agriculture on the other hand accounts for about 25%. The Construction and Transportation sector, as well as the Service sector and other types of activities, also contribute significantly towards the development of the State. Industry in Lithuania has been undergoing development since the history of the formation of the Republic. Currently, the most productive sectors are the food and chemical industry, as well as machine building, woodworking, the production of building materials and ready-mix concrete, and metalworking. There is an annual increase in the industrial sector.

The woodworking industry is considered to be one of the fastest growing in Lithuania. Specialization is ongoing in the production of timber, the furniture industry and the production of paper. Due to intensive investments, the competitiveness of all companies has increased dramatically. The inflow of investments allows the Country to regularly develop a new range of products, modernize the technology of production and also increase the pace of her overall development. The best woodworking company by right is recognized as UAB Narbutas & Ko, which was created in the first years of the country’s independence. SBA Group and Libra Group have also shown excellent growth performances. It is worth noting that most of the products from the woodworking sector are exported.

Mechanical engineering also continues to develop actively. In comparison with the last decade, the level of development of this sector increased by eighteen percent. Many leading companies managed to attract quite large investments in recent years which have subsequently increased their competitiveness in the market. The main investment assets come from Denmark, Sweden, Finland and Estonia. The leading companies in this industry are Snaige, UAB Pakma, Vienybe, Vingriai, Vildeta and many others. Quite a large part of items produced are intermediate products for complex structures and equipment which is intended for the wood processing industry. It is worth noting that Lithuania’s machinery industry is tailored towards Western consumers. In accordance with this, the range of products is regularly expanded. Many analysts note that such a success in engineering as seen in the Republic is connected with a very complex process of privatization, which have been taking place for about ten years now. That notwithstanding, the majority of operating companies need to attract domestic and foreign investment. Copyright www.orangesmile.com

The chemical industry began to develop back in the 19th century. It is focused mainly on the production of paint and varnish materials, the production of pharmaceuticals, semi synthetic fibers, cosmetics and cosmetics products, household chemicals and fertilizers. Over seventy enterprises operate in the chemical industry. The main companies in this field are SICOR Biotech UAB, Sanitas AB, Liuks UAB, Naujoji Ringuva AB, Vilniaus Farmacijos Fabrikas AB. Quite large amount of raw materials is produced in Lithuania. Nevertheless, importation still plays a dominant role to date. Investments in this sector are also increasing, mainly due to its high science-intensive approach and the conformity of production with international standards.

Lithuania consumes at least ten billion kilowatt of electricity per year. Domestic electricity is provided by thermal power plants and hydroelectric power stations. However, only a small part of the energy production is the result of her power material. It should be noted that the country lost a rather large percentage of electricity production after the closure of the nuclear power plant at the request of the European Union. In recent times, the production of electricity by wind stations has been developed. Last year, Lithuania completed the construction of a powerful complex of wind power stations, whose capacity is 60 megawatts. The Bank of Lithuania is the Central bank in the Republic. It should be noted that it is a component of the system of central banks of the Eurozone. About 90% of the total bank capital comprises of foreign deposits. In general, Lithuania maintains a sufficiently rigid banking framework, due to which a balance in the system is maintained. For example, only 9 commercial Lithuanian banks, four branches, and four foreign banks were issued an official banking license. The reserve of the National Bank is about eighteen billion Litas according to data for the previous year.

At least 20% of the able-bodied population is employed in the Agricultural Sector. More than half of all the free lands of Lithuania were allocated to agricultural lands; about 40% are occupied by arable land. At the same time, the country is engaged in land reclamation and drainage of marshes annually. You will find the most fertile soils situated in the center of the country. The best area was given to the cultivation of barley. They also grow wheat, oats, beans, potatoes, sugar beet and perennial grasses. The main direction of livestock is the production of dairy products and bacon pigs. There are five large poultry farms in the country, and fishing is also developed. Mirror carp, crucian carp and bream are raised. In freshwater rivers, you will find crayfish, most of which are exported to the Russian Federation.

The unemployment rate in the country has dropped significantly. At present, it is about twelve percent of the total number of able-bodied population. The average accrued salary according to the data for the previous year was about 783 Euros. The minimum salary for the same year is 380 Euros. The average pension in Lithuania is about 300 dollars. The retirement age for both male and female citizens is 65 years old. It was increased to this figure in accordance with the compulsory requirement of the European Union. At the same time, the monetization of benefits in Lithuania practically did not affect pensioners and the socially unprotected strata of the population. Lithuania’s foreign debt is gradually increasing. Back in the 2000s, it accounted for only 15% of her total GDP. Today, the Country’s foreign debt has reached almost 40% of her total GDP. In 2016, GDP was about 27 billion dollars and the GDP per capita about 7,500 dollars.