Lithuania/Economy

Economy - overview: Lithuania, the Baltic state that has conducted the most trade with Russia, faced its own economic and financial crisis in 1999 as a result of the government's wrongfooted economic policies and its inadequate response to the August 1998 Russian financial crisis. Preliminary figures indicate 3% negative GDP growth, 10% unemployment - the highest level since independence in 1991 - and a budget deficit estimated at between 8 and 9% of GDP. The policies that Prime Minister Kubilius implemented upon taking the helm in November 1999 underscore a commitment to fiscal restraint, economic stabilization, and accelerated reforms. The austere 2000 budget in based on a 2% GDP growth forecast, 3% inflation, and a 2.8% budget deficit. Lithuania was invited at the Helsinki EU summit in December 1999 to begin EU accession talks in early 2000. Privatization of the large state-owned utilities, particularly in the energy sector, and reducing the high current account deficit remain challenges for the coming year.

GDP: purchasing power parity - $17.3 billion (1999 est.)

GDP - real growth rate: -3% (1999 est.)

GDP - per capita: purchasing power parity - $4,800 (1999 est.)

GDP - composition by sector:
agriculture: 10%
industry: 32%
services: 58% (1998 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.4%
highest 10%: 28% (1993)

Inflation rate (consumer prices): 0.3% (1999 est.)

Labor force: 1.8 million

Labor force - by occupation: industry 30%, agriculture 20%, services 50% (1997 est.)

Unemployment rate: 10% (1999)

Budget:
revenues: $1.5 billion
expenditures: $1.7 billion, including capital expenditures of $NA (1997 est.)

Industries: metal-cutting machine tools, electric motors, television sets, refrigerators and freezers, petroleum refining, shipbuilding (small ships), furniture making, textiles, food processing, fertilizers, agricultural machinery, optical equipment, electronic components, computers, amber

Industrial production growth rate: -14% (1999 est.)

Electricity - production: 15.58 billion kWh (1998)

Electricity - production by source:
fossil fuel: 13.09%
hydro: 4.3%
nuclear: 82.61%
other: 0% (1998)

Electricity - consumption: 7.829 billion kWh (1998)

Electricity - exports: 7 billion kWh (1998)

Electricity - imports: 340 million kWh (1998)

Agriculture - products: grain, potatoes, sugar beets, flax, vegetables; beef, milk, eggs; fish

Exports: $3.3 billion (f.o.b., 1999)

Exports - commodities: machinery and equipment 19%, mineral products 19%, textiles and clothing 19%, chemicals 10%, foodstuffs (1998)

Exports - partners: Russia 17.4%, Germany 15.8%, Latvia 12.7%, Denmark 5.9%, Belarus 5.2% (1999)

Imports: $4.5 billion (f.o.b., 1999)

Imports - commodities: machinery and equipment 30%, mineral products 16%, chemicals 9%, textiles and clothing 9%, foodstuffs (1998)

Imports - partners: Russia 20.4%, Germany 16.5%, Denmark 3.8%, Belarus 2.2%, Latvia 2% (1999)

Debt - external: $NA

Economic aid - recipient: $228.5 million (1995)

Currency: 1 Lithuanian litas = 100 centas

Exchange rates: litai per US$1 - 4.000 (fixed rate since 1 May 1994)

Fiscal year: calendar year