SIGITAS BRAZINSKAS Lithuanian Development Agency Lithuania: export oriented economy

THE BALTIC SEA REGION A 100 MILLION PEOPLE MARKET POTENTIAL PLUS ADJOINING MARKETS EAST & WEST

THE LITHUANIAN ECONOMY * GDP Growth:5.1% (4.1%) 3.3% 5.9% 5.2% 3rd Q 2002 – 6.6% Inflation:2.4% 0.3% 1.4% 2.1% 1.0% Unemployment:6.4% 8.4% 11.4% 10.7% 10.5% Exports (€ bn): Imports (€ bn): FDI (cum. € bn): Source: Lithuanian Department of Statistics *-forecast

GDP – stable growth Growth by 6.6 % (IIIrd Q 2002) in:  Building industry  Transport  Warehouses  Wholesale, retail Source: department of Statistics

LITHUANIA RAPIDLY BECOMING AN EXPORT ECONOMY Exports increase in year 2001 by 20% EXPORTS AS % OF GDP: 1999 – 28% 2000 – 34% 2001 – 38% 21

The Lithuania’s export performance, Y2001, bill. LTL, % of GDP Source: Department of Statistics %

Growth in export, Y , 8 months, thous. LTL Source: Department of Statistics

Lithuanian export structure, % Y2001 Source: National Development Institute

WHAT DO THESE FAMOUS COMPANIES HAVE IN COMMON? IBM MOTOROLA TOSHIBA SIEMENS RENAULT ADIDAS IKEA VOLVO, SAAB, VW SAMSUNG PHILIPS BENTLEY SYSTEMS THEY ARE CUSTOMERS OF LITHUANIA 22

Diversified industry, export oriented PORT

Opportunities in Lithuania  furniture in Siauliai, Kaunas, Klaipeda  electronics in Panevezys (20 % European market), Vilnius, Kaunas  auto components in Klaipeda, Kaunas  fertilizers in Jonava and Kedainiai (7 % of world market)  textile in Kaunas, Vilnius, Ukmerge  food processing in Telsiai, Rokiskis, Panevezys

Investments, EUR Mill, 1 st half 2002 Source: Bank of Finland,

CUMULATIVE FDI BY COUNTRY OF ORIGIN (€ m, as of July 1, 2002) Source: Lithuanian Department of Statistics

Selection of production sites or buildings Selection, introduction of Joint Venture partners Contacts with suppliers, building contractors, government institutions Information about operating costs, human resources, incentives Information about Free Economic Zones, Industrial Parks Liaison with relevant state and local authorities LDA SERVICES Source: Lithuanian Development Agency

TRAKAI CASTLE

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