Language: Lithuanian
Currency: Lithuanian litas
Calling
Code: 370
Lithuania (lit. Lietuva), the official name is the
Republic of Lithuania (lit. Lietuvos Respublika) - a state located
in the northern part of Europe. The capital of the country is
Vilnius.
Area - 65,300 km². The length from north to south is
280 km, and from west to east - 370 km. The population is 2,793,000
people (September, 2019). It has access to the Baltic Sea, located
on its east coast. The coastline is only 99 km (the lowest indicator
among the Baltic states). In the north it borders with Latvia, in
the southeast - with Belarus, in the south-west - with Poland and
the Kaliningrad region of Russia.
Member of the UN since
1991, EU and NATO since 2004, OECD since May 2018. Included in the
Schengen zone and the Eurozone.
The country's independence
was proclaimed on March 11, 1990, and legally registered on
September 6, 1991.
Aukštaitija
Aukštaitija
National Park
Biržai Castle
Samogitia
Hill
of Crosses
Panemune Castle
Žemaitija
National Park
Dzūkija (Dainava)
Purnuškės
Trakai
Dzūkija National Park
Kernave
Sūduva (Suvalkija)
Lithuania Minor
Visitor Information
Embassies in Lithuania
United States
Akmenu 6, Vilnius
United Kingdom
Antakalnio 2, Vilnius
Australia
Vilnius 23
Tel. (5) 212 3369
Canada
Jogailos 4, Vilnius
Emergency Numbers
Ambulance 03, 112
Fire fighters 01, 112
Police 02, 112
The etymology of the word "Lithuania" is not exactly known, while there are many versions, none of which has received universal recognition. The root "lit" and its variants "years" / "lyut" allow for various interpretations both in the Baltic and Slavic, and in other Indo-European languages. So, for example, there are consonant toponyms on the territory of Slovakia "Lytva" and Romania "Litua", known from the 11th-12th centuries. According to E. Pospelov, the toponym was formed from the ancient name of the Letava River (Lietavà from the lit. lieti “to pour”, Russian “Letauka”). The feudal principality, through the lands of which this river flowed, eventually occupied a leading position and the name was extended to the entire state. The Tale of Bygone Years (XII century) mentions the ethnonym "Lithuania", which completely coincides with the name of the area "Lithuania" both in meaning (the territory where Lithuanians live) and in form.
The surface is flat, with traces of ancient
glaciation. Fields and meadows occupy 57% of the territory, forests and
shrubs - 30%, swamps - 6%, inland waters - 1%.
The highest point
- 293.84 m above sea level - Aukshtoyas hill (or Aukshtasis kalnas) in
the southeastern part of the country, 23.5 km from Vilnius.
The
largest rivers are the Neman and the Viliya. More than 3 thousand lakes
(1.5% of the territory): the largest of them is Druksiai on the border
of Latvia, Lithuania and Belarus (area 44.8 km²), the deepest is
Tauragnas, 61 m), the longest is Asveya, 30 km long near the town of
Dubingiai.
The climate is transitional from maritime to
continental. The average temperature in winter is −5°C, in summer +17°C.
748 mm of precipitation falls annually.
Minerals: peat, mineral
materials, building materials.
Ancient history
The territory of modern
Lithuania was inhabited by people from the end of the X — IX
millennium BC. e. Residents engaged in hunting and fishing, used
bows and flint-tipped arrows, scrapers for leather, fishing rods and
nets. At the end of the Neolithic (III – II millennium BC),
Indo-European tribes entered the territory of modern Lithuania. They
were engaged in agriculture and cattle breeding, while hunting and
fishing remained the main occupations of local residents until the
widespread use of iron tools. The Indo-Europeans, who settled the
lands between the mouths of the Vistula and the Western Dvina, stood
out in a separate group called the learned Baltic.
It is
traditionally believed that the ethnic basis of Lithuania is formed
by the bearers of the archaeological culture of the East Lithuanian
mounds that developed in the 5th century AD e. in the territory of
modern Eastern Lithuania and North-Western Belarus. Around the 7th
century, the Lithuanian language separated from Latvian.
The
origin of the state
The emergence of statehood on the territory
of modern Lithuania dates back to the 13th century, while the very
name “Lithuania” was first mentioned in the Quedlinburg annals under
1009 in a report on the murder by pagans of the missionary Bruno on
the border of Russia and Lithuania. According to the most common
version, the toponym arose from the name of the small river Letauka,
a tributary of Nyaris. According to a more modern hypothesis, the
name of the country could come from the ethnonym "years" or "leiti",
which the inhabitants of the surrounding lands called the warriors
of the Lithuanian princes.
At the beginning of the XIII
century, the invasion of the German crusader knights began in the
lands of the Gentile Baltic pagans. They conquered Prussia and
Livonia. At the same time, the expansion of the Galician-Volyn
principality began in the south. By the middle of the XIII century,
many Lithuanian lands were united under the rule of Prince Mindovg,
who received Catholic baptism in 1251 and was crowned in 1253. A few
years later Mindovg renounced Christianity and until the beginning
of the XIV century the Lithuanian lands remained pagan. Despite the
fact that already in 1263 Mindovg was overthrown, his rule marked
the beginning of the existence of the Grand Duchy of Lithuania for
more than five hundred years.
Grand Duchy of Lithuania
In
the XIV - early XV centuries, the territory of the Grand Duchy of
Lithuania grew rapidly, mainly due to the annexation of the lands of
Western Russia. The inclusion of Slavic lands in the state, many
times larger than the actual Lithuanian lands in terms of area and
population, led to the adoption by the Lithuanian princes, who took
possession of the Russian lands, Orthodox culture and the West
Russian language. Over time, the West Russian language became the
official language of the office of the Grand Dukes. Actually, the
Lithuanian language until the 16th century remained unwritten,
although it continued to be used on ethnically Lithuanian lands.
In 1385, the Grand Duke of Lithuania Jagiello concluded the
Union of Krev with the Kingdom of Poland. Under the terms of the
union, Jagiello undertook to annex the Grand Duchy of Lithuania to
the Kingdom of Poland and baptize Lithuanian lands according to the
Catholic rite, and he himself became king of Poland and retained the
title of Grand Duke of Lithuania. However, he was soon forced to
cede power in the Grand Duchy of Lithuania to his cousin Vitovt. The
latter, although he recognized himself as a vassal of Jagiello,
pursued an independent foreign policy and thus a complete
unification of states did not take place. During the reign of
Vytautas (1392-1430), the Grand Duchy of Lithuania reached its
highest peak, and its territory amounted to approximately 930
thousand km².
In the same period, the Lithuanian princes from
the Gediminovich dynasty fought a hard battle with the Teutonic
Order, which was defeated in 1410 at the Battle of Grunwald by the
combined forces of the Grand Duchy of Lithuania and the Kingdom of
Poland. In 1422, Jemaitia finally entered the Grand Duchy, which for
a long time served as the main subject of disputes with the
crusaders.
The Grand Duke Casimir, who was also the king of
Poland, expanded the influence of the Jagiellonian dynasty -
subjugated Prussia, put his son on the Czech and Hungarian thrones.
In 1492-1526 there was a political system of the Jagiellonian
states, covering Poland (with vassals of Prussia and the
Principality of Moldova), the Grand Duchy of Lithuania, the Czech
Republic and Hungary.
The legal basis of the state was the
statute published in three editions (1529, 1566, 1588), reflecting
socio-economic and political changes. The statute regulated issues
of civil, criminal and procedural law. On the territory of the Grand
Duchy, the third edition of the statute was valid until 1840.
In the Commonwealth
In 1569, a new union with Poland was concluded in
Lublin, as a result of which the Commonwealth was formed. According
to the Act of the Union of Lublin, Lithuania and Poland were ruled
by a jointly elected king, and state affairs were decided in the
general Sejm. However, legal systems, the army, and officials
remained separate.
In the sixteenth and eighteenth centuries,
a political system, known as gentry democracy, developed in
Lithuania according to the Polish model. It was characterized by the
presence of broad rights of the gentry (nobility) in government. At
the same time, there was a polonization of the gentry, expressed in
the adoption by the ruling estate of the Grand Duchy of the
Lithuanian Polish language, culture and identity. Polonization did
not have such a significant effect on the unprivileged classes.
As part of the Russian Empire
In the 18th century, as a
result of devastating wars and a comprehensive state crisis, the
Polish-Lithuanian Commonwealth fell into decay and came under the
influence of the Russian Empire. In 1772, 1793 and 1795, sections of
the Commonwealth took place between Russia, Prussia and Austria.
Almost the entire territory of the former Grand Duchy of Lithuania
was annexed to the Russian Empire.
In attempts to restore
statehood, the Polish-Lithuanian nobility took Napoleon's side in
1812, and also repeatedly raised revolts (1830–1831, 1863–1864),
which, however, ended in defeat. In an effort to eliminate Polish
influence in Lithuania, the Russian authorities launched a broad
campaign of depolonization and Russification. In 1864 the Lithuanian
Latin alphabet was banned. The Lithuanian population, especially the
Catholic clergy, resisted Russification: Cyrillic editions were
ignored, and books printed in Latin letters were smuggled from
neighboring Prussia. In 1904, the ban on Lithuanian Latin letters
was canceled.
During the first world war
The outbreak of
World War I quickly spread throughout Lithuania; by the end of 1915,
all ethnically Lithuanian lands were controlled by Germany.
Lithuanians have lost all political rights. In the beginning,
Lithuanian periodicals were even banned. However, the Lithuanian
intelligentsia tried to take advantage of the geopolitical situation
and began to look for opportunities to restore the independence of
Lithuania. On September 18-22, 1917, the Lithuanian Conference was
held in Vilnius, during which the Lithuanian Tariba (“Council of
Lithuania”) was elected. During the conference, a decision was made
on the need to create an independent Lithuanian state within
ethnographic borders and with the capital in Vilnius. A. Smeton was
elected Chairman of the Council.
On December 11, 1917, the
restoration of the State of Lithuania was proclaimed. On March 23,
1918, Emperor William II recognized the independence of Lithuania.
On the basis of the act recognizing Lithuanian statehood, Tariba was
transformed into the State Council of Lithuania.
On July 13,
1918, the Council of State decided to establish a constitutional
monarchy in Lithuania and propose a crown to Prince Württemberg
Wilhelm von Urach. However, on November 2, 1918, this decision was
withdrawn. The main provisions of the Interim Constitution of
Lithuania were adopted. On November 11, 1918, the Presidium of the
State Council approved the first interim government of Lithuania out
of six ministers under the leadership of Augustinas Voldemaras,
thereby initiating the creation of the Lithuanian state apparatus.
Republic of Lithuania
After the departure of the main German
units and the start of battles with the Bolshevik Red Army, the
Lithuanian Soviet Republic was formed on December 16, 1918. February
27, 1919 in Vilnius, a joint meeting of the CECs of Lithuania and
Belarus was held, where the formation of the Lithuanian-Belarusian
SSR (Litbel) was proclaimed.
In February - March 1919, the
troops of the Lithuanian Tariba, supported by German garrisons,
began military operations against Litbel, in April 1919 the Polish
army joined them. As a result, the territory of Litbel was occupied
by Polish units. In order to fight Poland, Soviet Russia required
neutrality of Lithuania, for which July 12, 1920, a
Soviet-Lithuanian treaty was concluded in Moscow. Litbel ceased to
exist, Soviet Russia recognized the independence of Lithuania and
the transfer of the disputed Vilna Territory to it.
After the
defeat of the Red Army near Warsaw and the Soviet retreat, the
Polish units under the command of General L. Zheligovsky staged a
rebellion and allegedly arbitrarily occupied the territory of the
Vilnius Region. On October 12, 1920, it was announced that Middle
Lithuania was created on the territory of the territory of the
region, but already in 1922 it became part of the Polish Republic as
a voivodship. The Lithuanian authorities continued to consider
Vilnius the capital of Lithuania, although in fact the leadership
was from Kaunas.
In 1919, the post of president was introduced in
Lithuania, A. Smeton was elected the first president of the state.
On May 5, 1920, the first meeting of the democratically elected
Constituent Assembly was held. In 1921, the country was admitted to
the League of Nations. In 1922, a permanent constitution was
adopted. Reforms in the field of land resources, finance and
education are presented, the Lithuanian currency (lit) is
introduced, the University of Lithuania is opened.
Klaipeda
region (Memelland), populated mainly by Prussian Lithuanians and
Germans, was decided by the League of Nations under the temporary
control of the French administration. In 1923, as a result of an
uprising of local Lithuanians and with the secret participation of
the Lithuanian police, Klaipeda Territory was annexed to Lithuania
on the basis of autonomy. The French administration did not take any
steps to combat the uprising; on February 16, 1923, the Entente
countries recognized the accession of Klaipeda Krai to Lithuania.
In December 1926, a military coup took place in Lithuania, which
returned the nationalist leader A. Smetonu to power. The so-called
authoritarian phase of government has begun. In 1928, a constitution
was adopted that expanded presidential powers. Opposition parties
were banned, censorship tightened, and the rights of national
minorities cut back.
On March 17, 1938, Poland presented an
ultimatum to Lithuania demanding that the Vilnius Region be
recognized as an integral part of the Polish state. A year later, on
March 20, 1939, Lithuania received an ultimatum from Germany
demanding that Klaipeda Territory be returned to it. Lithuania was
forced to accept both ultimatums.
World War II and accession
to the USSR
According to the secret protocol to the
Molotov-Ribbentrop Pact concluded in August 1939, Lithuania was
included in the sphere of interests of Germany. On September 1,
Germany launched an invasion of Poland, and on September 17, the
USSR liberated the lands conquered by Poland during the
Soviet-Polish war, which resulted in the return of the western lands
of Belarus and Ukraine, including Vilnius.
On September 25,
the USSR initiated negotiations on Germany’s refusal of claims for
Lithuania in exchange for the territory of the Warsaw and Lublin
Voivodeships of Poland. On October 10, 1939, an “Agreement on the
transfer of Lithuania to the city of Vilnius and the Vilnius region
and on mutual assistance between the USSR and Lithuania with a
confidential protocol thereto” was signed for a period of 15 years,
which provided for the introduction of a 20,000-strong contingent of
Soviet troops into Lithuania. On July 14-15, 1940, after the
adoption of the Soviet ultimatum and the introduction of an
additional Soviet military contingent, elections were held in
Lithuania for the People’s Diet, in which only the pro-Soviet “Bloc
of the working people” was allowed to participate. On July 21, the
People’s Sejm proclaimed the formation of the Lithuanian SSR; on
August 3, 1940, it was accepted into the USSR. In 1940, already
being part of the USSR, Lithuania received part of the territory of
Soviet Belarus.
June 22, 1941, after the German attack on the
USSR, anti-Soviet actions in Lithuania followed. In Kaunas, the
Provisional Government of Lithuania was proclaimed, maintaining
close contacts with the Germans. However, after the start of the
actual German occupation, this Provisional Government was dissolved,
and the territory of Lithuania was included in the
Reichskommissariat Ostland (general district of Lithuania), under
which it was granted some autonomy. The occupation administration
was led by General P. Kubiliunas.
In 1944, the Nazis were
expelled by the Red Army from the territory of the Lithuanian SSR
(see Belorussian operation (1944)).
Post-war period
In
1944-1953, clashes occurred between law enforcement agencies and
armed nationalist groups. The "Forests" or "Greens," as they were
called in Lithuania, carried out terror against representatives of
the Soviet government, military personnel, as well as civilians,
including children. The main backbone of the "Forests" was made up
of people who stained themselves by collaborating with the German
occupation regime, participated in armed formations created by the
Nazis, participated in punitive actions in Lithuania, Belarus and
Russia, destroying the Jewish population. They were also joined by
former large landowners who lost property.
Later, the Soviet
authorities encountered non-violent resistance from the local
nationalist intelligentsia and the Catholic clergy.
During
the years of perestroika, the Lithuanian independence movement
intensified significantly and was increasingly supported by local
authorities. In 1989, the Baltic Way campaign was organized.
Residents of Lithuania, Latvia and Estonia, expressing their desire
to secede from the USSR, built a live chain with a length of almost
600 km.
Restoration of independence
On March 11, 1990, the Supreme Council announced
the restoration of independence of Lithuania. Lithuania became the
first Soviet republic to announce its withdrawal from the USSR.
On April 20, 1990, the USSR imposed an economic blockade,
cutting off oil supplies. The blockade lasted 74 days, but the
Lithuanian authorities continued the course towards independence.
Gradually, economic relations were restored. Tension reappeared in
January 1991, when Soviet separate parts of the army, police and the
KGB tried to seize power by force. The peaceful resistance of the
Lithuanian population led to the defeat of the putsch, 14 were
killed and 900 wounded civilians. Soon after, in February 1991,
Iceland became the first country to recognize the independence of
Lithuania.
On September 6, 1991, the USSR State Council
recognized the independence of Lithuania. On September 17 of the
same year, Lithuania was admitted to the United Nations.
On
October 25, 1992, citizens of the Republic of Lithuania voted in a
referendum to adopt the Constitution of the Republic of Lithuania.
On February 14, 1993, Algirdas Brazauskas was elected president of
the country by universal suffrage. On August 31 of the same year,
the last units of the Soviet army left Lithuania.
On March
29, 2004, Lithuania joined the NATO bloc, and on May 1, 2004 became
a full member of the European Union. On January 1, 2015, Lithuania
entered the eurozone.
The territory of Lithuania is divided into 10
counties. The counties form the territories of self-governments of 9
cities and 43 districts, as well as 8 newly formed self-governments.
Self-governments are divided into elderships.
Cities of Lithuania
In Lithuania, there are 3 types of settlements: cities, towns (towns)
and villages. City status is granted by the Seimas of the Republic of
Lithuania. In 2004, there were 106 cities.
Cities with a
population of over 100 thousand people:
Vilnius (556.5 thousand);
Kaunas (298.8 thousand);
Klaipeda (152.0 thousand);
Siauliai
(100.7 thousand).
According to the World Bank data for 2013-2014,
Lithuania was included in the list of the fastest disappearing countries
in the world. The catastrophic decrease in the population - 28,366 (1%)
- was exacerbated by the rapid emigration of residents, increased
mortality, and a decline in the birth rate. According to various
sources, since gaining independence and joining the EU (2004), about a
million people have left Lithuania. Most of them went to work in Western
Europe. According to the estimates of the Department of Statistics of
the Republic of Lithuania, at the beginning of September 2015, 2,898,062
people lived in the country. Since 1992, the country has been
depopulating, caused by both emigration and negative natural population
growth.
As of 2019, according to UN estimates, 117,218 immigrants
lived in Lithuania, or 4.2% of the country's population.
According to the 2021 Lithuanian census, Lithuanians make up 84.6% of
the country's population, Poles - 6.5%, Russians - 5.0%, Belarusians -
1.0%, Ukrainians - 0.5%. According to the World Health Organization
(WHO) in 2017, Lithuania is recognized as the most drinking country in
Europe and in the world.
Religiously, more than 80% are
Christians, of which 77.3% of Lithuanian residents are Catholics, 4.1%
are Orthodox, and 6.1% are non-believers.
The official language of Lithuania is the Lithuanian
language, one of the Baltic languages, native to 84.1% of the population
of Lithuania (about 2.45 million people). Since May 1, 2004, the
Lithuanian language has been declared one of the official languages of
the European Union. According to the 1989 census, Russian was the native
language for 12% of the population of the Lithuanian SSR.
According to the results of the 2011 census, 63% of Lithuanian residents
speak Russian; the next place in terms of proficiency among foreign
languages is English, which is spoken by 30% of the inhabitants of
Lithuania National minorities are more likely to be bilingual, that is,
to speak their native language and the state language. A special
linguistic situation is developing in Vilnius, where a significant part
of the population is made up of residents of Slavic nationalities,
especially Poles. In some areas (for example, in eastern Lithuania),
Russians also speak Polish or Belarusian and their dialects. The second
largest native language in Lithuania is Russian (see Russian language in
Lithuania).
The speakers of the Old Russian language have long
lived and numerically dominated the Slavic lands of the Grand Duchy of
Lithuania. Subsequently, Russian-speaking residents appeared in some
numbers in the ethnically Lithuanian lands as a result of the emigration
of the Old Believers, then after the incorporation of Lithuania into the
Russian Empire (1795).
Lithuania is a parliamentary republic, with the
characteristic features of a presidential republic. The term of office
of the popularly elected President is 5 years. Currently, the President
of the Republic of Lithuania is Gitanas Nauseda, who was elected in
2019.
The Parliament of the Republic is the unicameral Seimas of
the Republic of Lithuania with 141 seats. Of these, 71 deputies are
elected by the majority system in single-member districts and the
remaining 70 - by the proportional-list system with a barrier of 5%. The
term of deputy powers is 4 years.
Legal system
The
constitution was adopted by referendum on 10/25/1992. The highest
judicial instance is the Supreme Court, the courts of appeal are the
appellate instances, the courts of first instance are the district
courts, the lowest level of the judicial system is the district courts.
Political life
Parties
Domestic politics
In June 2008, the
Lithuanian parliament passed a law equating Nazi and Soviet symbols and
banning their use in public places: they "can be perceived as propaganda
of the Nazi and communist occupation regimes." It is forbidden to
"demonstrate flags and coats of arms, signs and uniforms of Nazi
Germany, the USSR, the Lithuanian SSR, as well as flags, banners, coats
of arms, signs, uniforms, the components of which are flags, coats of
arms of Nazi Germany, the USSR and the Lithuanian SSR." The use of "the
Nazi swastika, the Soviet hammer and sickle, the Soviet five-pointed red
star, as well as the performance of the anthems of Nazi Germany, the
USSR and the Lithuanian SSR" is prohibited.
Foreign policy
Lithuanian soldiers took part in the Iraq War and were in Afghanistan as
part of a NATO operation.
For relations with Russia, see
Lithuanian-Russian relations.
For relations with Belarus, see Belarus
and Lithuania.
For relations with the United States, see
US-Lithuanian Relations.
The average gross salary (before taxes) in Lithuania
in the second quarter of 2022 was €1,780.5. The average net salary
(after taxes) in Lithuania in the second quarter of 2022 was €1,116.2.
From July 1, 2017, after the entry into force of the new Labor Code,
the minimum wage can only be applied to unskilled work (that is, which
is not subject to special qualification requirements).
From
January 1, 2021, the minimum wage is €642, the hourly rate is €3.93. The
Keitz index (the ratio of the minimum wage to the average salary) in
2021 is projected to be 48.1% (in the EU it ranges from 45% to 51%). The
increase in the minimum wage from €607 to €642 increased the minimum
unemployment benefit, which is 23.27% of the minimum wage, by 5.76% or
€8.1 from €141.25 to €149.39.
From 1 January 2022, the minimum
wage is €730 (gross) and €533.65 (net) per month. From June 1, 2022, the
minimum wage is €730 (gross) and €549.65 (net) per month.
The
unemployment rate in Lithuania in the fourth quarter of 2020 was 9%.
According to Eurostat, in June 2021, the unemployment rate in Lithuania
was 6.4%.
Advantages: Successfully transitioned to a stable
market economy. Low inflation (2.26%). The national currency is the
euro. The country is a member of the EU single market. Relatively high
economic growth (above the EU average), and low public debt (below the
EU average). Still relatively cheap, and well-educated, in comparison
with the EU countries, the workforce. With the unemployment rate
plummeting and the labor shortage widening, wage growth as of 2019 is
not constrained by the economic slowdown.
Weaknesses: Poor
resource base. The biggest problem (as in other countries of the new EU
members) is the increasing shortage of able-bodied labor force every
year and the increase in the number of pensioners, due to low birth
rates and high emigration of the population to other, richer, EU
countries, which in turn forces employers to pay more to their
employees, thereby artificially raising wages, which leads to an
imbalance between productivity and wages.
Lithuania has an open
and mixed economy, which the World Bank classifies as a high-income
economy. According to 2016 data, the 3 largest sectors of the Lithuanian
economy are the service sector (68.3%), industry (28.5%) and agriculture
(3.3%). In the Global Competitiveness Index of the World Economic Forum,
Lithuania ranks 41st (out of 137 countries).
Lithuania joined
NATO and the EU in 2004, Schengen in 2007 and OECD in 2018.
On
January 1, 2015, the euro became the national currency, replacing the
litas at the rate of 1€ = 3.4528 litas.
Agricultural goods and
foodstuffs accounted for 18.3% of exports, chemicals and plastics -
17.8%, machinery and equipment - 15.8%, mineral products - 14.7%, wood
and furniture - 12.5%. According to 2017 data, more than half of all
Lithuanian exports go to 7 countries, including Russia (15%), Latvia
(9.9%), Poland (8.1%), Germany (7.3%), USA (5. 3%), Estonia (5%) and
Sweden (4.8%). In 2016, exports amounted to 74% of Lithuania's GDP.
Lithuania's GDP experienced very high growth rates during the decade
leading up to 2009, peaking at 11.1% in 2007. As a result, the country
was often referred to as the Baltic tiger. However, in 2009 due to the
global financial crisis, the GDP contracted by 14.9% and the
unemployment rate reached 17.8% in 2010. After the recession in 2009,
the annual economic growth in Lithuania was much slower compared to the
data before 2009. According to the IMF, financial conditions are
supportive of growth and financial soundness indicators remain strong.
Public debt in 2016 decreased to 40% compared to 42.7% in 2015 (before
the global financial crisis - 15% of GDP in 2008).
According to
preliminary data from the Lithuanian Statistical Office, Lithuania's
gross domestic product (GDP) was €48.7 billion in 2020. In 2020, the
Lithuanian economy was hit by the COVID-19 pandemic; compared to 2019,
there was a decrease in GDP by -1.3%. A negative impact on the change in
Lithuanian GDP in 2020 was the reduction in the volume of services:
hotel, catering, transport and storage.
The inflation rate in
Lithuania in 2020 (December 2020 to December 2019) was 0.2%.
Lithuania ranks 14th in the world in the World Bank Group's Ease of
Doing Business Index and 19th out of 178 countries in the Economic
Freedom Index measured by the Heritage Foundation. On average, more than
95% of all foreign direct investment in Lithuania comes from the
countries of the European Union. Historically, Sweden is the largest
investor with 20-30% of all FDI in Lithuania. FDI in Lithuania rose in
2017, reaching the highest investment project ever recorded. In 2017,
Lithuania was the third country after Ireland and Singapore in terms of
the average cost of investment projects. According to Eurostat, in 2017
the value of Lithuanian exports was marked by the fastest growth not
only in the Baltic States, but throughout Europe, amounting to 16.9%.
Lithuania has a flat taxation system. According to Eurostat,
personal income tax (15%) and corporate tax (15%) rates in Lithuania are
among the lowest in the EU. The country has the lowest implicit tax rate
on capital (9.8%) in the EU. The corporate tax rate in Lithuania is 15%
and 5% for small businesses. There are 7 free economic zones in
Lithuania.
Information technology production in the country is
growing, reaching €1.9 billion in 2016. In 2017 alone, 35 Fintech
companies arrived in Lithuania, as a result, the Lithuanian government
and the Bank of Lithuania have simplified the procedures for obtaining
licenses for the activities of electronic money and payment
institutions. The first international blockchain center in Europe was
opened in Vilnius in 2018. The Lithuanian government is also looking to
attract financial institutions looking for a new location after Brexit.
Lithuania has issued a total of 39 e-money licenses, second only to the
UK in the EU with 128 licenses. In 2018, Google created a payment
company in Lithuania.
Automotive
In 2019, the total length of motorways
in Lithuania is 365.83 km. The maximum allowed speed is 130 km/h
(summer) and 110 km/h (winter). Lithuania is the only Baltic state with
motorways. In 2018, Lithuania ranked 37th in the world in terms of road
quality in the Global Competitiveness Index, compiled annually by
experts from the World Economic Forum. The highest place in the Baltic
States. By 2022, it is planned to reconstruct the remaining 40.23 km
section of the A5 motorway (between Marijampole and the border with
Poland) to motorway standards and connect it to the S61 Polish motorway.
Motorway sections
A1 – 195 km motorway section (between Kaunas
and Klaipeda)
A2 – 114 km motorway section (between Vilnius and
Panevezys)
A5 – 56.83 km motorway section (between Marijampole and
Kaunas)
Railway
Lithuanian railways, as in other countries of
the former USSR, have a wide gauge (1520 mm versus 1435 mm in Western
Europe).
On February 6, 2003, the regular movement of the Viking
combined transport train began.
Viking is a joint project of the
railways of Lithuania, Ukraine and Belarus, stevedoring companies and
the ports of Klaipeda, Chornomorsk and Odessa, connecting the chain of
marine container and piggyback lines of the Baltic region with a similar
system of the Black, Mediterranean and Caspian seas.
The
Lithuanian section of the pan-European railroad Rail Baltica is under
construction.
Aviation
Vilnius International Airport;
Palanga International Airport;
Kaunas International Airport;
Siauliai International Airport.
Nautical
Klaipeda port is the
largest port in Lithuania, connected by ferries to most important cities
on the Baltic coast.
The founding of Vilnius University in 1579 was the
main factor in the creation of a local community of scientists in
Lithuania and the establishment of links with other universities and
scientists in Europe. G. Forster, J. Gilibert, I. Frank and many other
invited scientists worked at Vilnius University. The Lithuanian
nobleman, military engineer and artillery theorist of the Grand Duchy of
Lithuania, Kazimir Semenovich, is considered a pioneer of rocket
science, who wrote in Latin and published in 1650 the book Artis Magnae
Artilleriae (from English - "lt", "The Great Art of Artillery"), which
for more than used in Europe for two centuries as the main guide to
artillery. The books featured standard designs for rockets, incendiary
projectiles, and other pyrotechnic devices. Here, for the first time,
the idea of using jet propulsion in artillery was presented. A large
section is devoted to the calibers, design, structure and qualities of
missiles (both military and civilian), including multi-stage missiles,
missile batteries and missiles with delta-wing stabilizers. The botanist
Jurgis Pabreza (1771-1849) created the first systematic guide to the
Lithuanian flora Taislius auguminis (Botany), written in the Samogitian
dialect, a Latin-Lithuanian dictionary of plant names, and the first
Lithuanian geography textbook.
In the interwar period, social
scientists appeared, such as Vasily Seseman, Lev Karsavin, Michal Pius
Römer. Because of the world wars, Lithuanian science and scientists
suffered greatly, but some of them achieved world fame. In particular,
Antanas Gustaitis, Vytautas Graiciunas, Marija Gimbutas, Birutė
Galdikas, A. J. Cliore, Algirdas Julien Greimas, Jurgis Baltrušaitis,
Algirdas Antanas Avizhenis. J. Kubilius, rector of Vilnius University
(1958-1991) is known for his work in probabilistic number theory, the
Kubilius model, and the Turan-Kubilius inequality bear his name. Jonas
Kubilius successfully resisted attempts to Russify Vilnius University.
Currently, Lithuania is included in the group of countries of
moderate innovators in the International Innovation Index, and ranks
15th among the EU countries in the European Innovation Ranking. Lasers
and biotechnologies are the leading areas of Lithuanian science and high
technology industry. The Lithuanian "Šviesos konversija" (Light
Conversion) has developed a femtosecond laser system that has an 80%
market share worldwide and is used in DNA research, ophthalmic surgery,
nanotechnology industry and science. The Laser Research Center of
Vilnius University in 2017 developed one of the most powerful
femtosecond lasers in the world, mainly intended for the treatment of
oncological diseases. In 1963, Vytautas Strazhis and his collaborators
created the Vilnius photometric system, which is used in astronomy. KTU
scientist A. Ragauskas has developed non-invasive devices for measuring
intracranial pressure and blood flow. K. Piragas contributed to the
control of chaos with his feedback control method - the Piragas method.
Kavli Prize winner V. Shikshnis is known for his discoveries in the
field of CRISPR - the invention of CRISPR-Cas9.
Lithuania
cooperates with the European Space Agency (ESA); With the help of ESA
and NASA rockets, 4 Lithuanian nanosatellites were launched into space:
LitSat-1 (2014), LituanicaSAT-1 (2014), LituanicaSAT-2 and Charlie
(2021).
The Lithuanian Ethnocosmological Museum and the Molėtai
Astronomical Observatory are located in Kulionis. 15 research
institutions are members of the Lithuanian Space Association. R.
Stankevičius is the only ethnically Lithuanian cosmonaut. Lithuania
became an Associate Member State of CERN in 2018. Lithuania will host 2
CERN incubators in Vilnius and Kaunas.
The most up-to-date
scientific research in Lithuania is carried out at the Center for Life
Sciences and the Center for Physical Sciences and Technology.
According to estimates in 2016, the annual growth of the biotechnology
and life sciences sector in Lithuania over the past 5 years was 22%. 16
Lithuanian institutions, 15 research centers (science parks and
innovation valleys) and more than 370 manufacturers operate in the
Lithuanian biotechnology industry.
In 2008, the Innovation Valley
Development Program was launched to modernize the Lithuanian research
infrastructure and stimulate cooperation between business and science. 5
research and development valleys were launched - Jūrinis (marine
technology), Nemunas (agro, bioenergy, forestry), Saulėtekis (laser,
semiconductors), Santara (biotechnology, medicine), Santaka (sustainable
chemistry and pharmaceuticals). The Lithuanian Innovation Center was
established to support innovation and research institutions.
In 1924 the Lithuanian National Olympic Committee was
founded; Lithuanian athletes made their debut at the Olympic Games in
Paris (1924). In 1937 and 1939 the Lithuanian men's basketball team won
the 1st and 2nd European Championships. In 1992-2016, Lithuanian
athletes won 25 medals at the Olympic Games, including 6 gold ones.
Discus thrower Virgilijus Alekna won two Olympic gold medals (2000,
2004).
Basketball is the national sport in Lithuania. Lithuanian
basketball teams and the national team regularly participate in the most
important competitions in Europe and the world.
Numerous newspapers (including Russian, Polish,
Belarusian, see Category:Lithuanian Newspapers). Lots of magazines.
Two state-owned (LRT and LRT Plius) and many private TV channels
(there is one operating Vilnius TV tower in the capital. Since 2012,
broadcasting has been digitized).
More than two dozen radio
stations (also broadcasting in Russian, Polish, English) in the FM band,
both from their own transmitters and from rented state ones.
In
Lithuania, 54.7% of households were connected to the Internet (2009).
Since 2015, military duty has been returned in the country, about 10% of fit men of military age are recruited every year. Prior to that, in the period from 2008 to 2015, the Lithuanian army consisted of only contract soldiers.