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Lithuania Economy 1996
Since independence in September 1991, Lithuania has made steady progress in
developing a market economy. Almost 50% of state property has been
privatized and trade is diversifying with a gradual shift away from the
former Soviet Union to Western markets. In addition, the Lithuanian
government has adhered to a disciplined budgetary and financial policy which
has brought inflation down from a monthly average of around 14% in first
half 1993 to an average of 3.1% in 1994. Nevertheless, the process has been
painful with industrial output in 1993 less than half the 1991 level. The
economy appeared to have bottomed out in 1994, and Vilnius's policies have
laid the groundwork for vigorous recovery over the next few years. Recovery
will build on Lithuanian's strategic location with its ice-free port at
Klaipeda and its rail and highway hub in Vilnius connecting it with Eastern
Europe, Belarus, Russia, and Ukraine, and on its agriculture potential,
highly skilled labor force, and diversified industrial sector. Lacking
important natural resources, it will remain dependent on imports of fuels
and raw materials.
GDP - purchasing power parity - $13.5 billion (1994 estimate as extrapolated
from World Bank estimate for 1992)
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National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
3.1% (monthly average 1994)
$270.2 million, including capital expenditures of $NA (1992 est.)
electronics 18%, petroleum products 5%, food 10%, chemicals 6% (1989)
oil 24%, machinery 14%, chemicals 8%, grain NA% (1989)
growth rate -52% (1992); accounts for 35% of GDP
industry's share in the economy has been declining substantially over the
past year, due to the economic crisis and the growth of services in the
economy; among branches which are still important: metal-cutting machine
tools 6.6%, electric motors 4.6%, television sets 6.2%, refrigerators and
freezers 5.4%; other branches: petroleum refining, shipbuilding (small
ships), furniture making, textiles, food processing, fertilizers,
agricultural machinery, optical equipment, electronic components, computers,
and amber
employs around 18% of labor force; accounts for 25% of GDP; sugar, grain,
potatoes, sugar beets, vegetables, meat, milk, dairy products, eggs, fish;
most developed are the livestock and dairy branches, which depend on
imported grain; net exporter of meat, milk, and eggs
transshipment point for illicit drugs from Central and Southwest Asia and
Latin America to Western Europe; limited producer of illicit opium; mostly
for domestic consumption
US commitments, including Ex-Im (1992), $10 million; Western (non-US)
countries, ODA and OOF bilateral commitments (1970-86), $NA million;
Communist countries (1971-86), $NA million
introduced the convertible litas in June 1993
litai per US$1 - 4 (fixed rate 1 May 1994)
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