Lithuania » Introduction

 

 

 

 

 

 

In 2003, prior to joining the European Union, Lithuania had the highest economic growth rate amongst all candidate and member countries. It is a member of the World Trade Organization, and the European Union. By UN classification, Lithuania is a country with a high average income. The country boasts a well developed modern infrastructure of railways, airports and four lane highways. It has almost full employment, with an unemployment rate of only 2.9%. According to officially published figures, EU membership fueled a booming economy, increased outsourcing into the country, and boosted the tourism sector.

 

The litas, the national currency, has been pegged to the Euro since February 2, 2002 at the rate of EUR 1.00 = LTL 3.4528, and Lithuania is expected to switch to the Euro on 1 January 2009. In 2006 income tax was reduced to 27% and a further reduction to 24% is expected in 2008. Income tax reduction and 12% annual wage growth is starting to make an impact with some emigrees gradually beginning to come back. The latest official data show emigration in early 2006 to be 30% lower than the previous year, with 3,483 people leaving in four months.