OECD Economic Surveys: Lithuania 2022
Lithuania’s economy exited the COVID-19-crisis successfully and was growing fast until
early 2022, buoyed by rising exports and rapid integration into global value chains.
However, with Russia’s aggression of Ukraine continuing and its consequences spreading,
the outlook has darkened. Growth has slowed, and inflation has risen to some of the
highest levels in the euro area, driven by high energy and food prices. The country
cut all energy ties with Russia, relying on imports from other countries instead.
The government supports the many Ukrainian refugees and helps households and firms
weather the energy crisis. Structural unemployment and skills mismatch remain high,
while poverty declines only slowly. Further reform could help maintain economic resilience
and cope with rising uncertainty. Reducing the scope of state-owned firms and improving
their governance would help raise productivity. Linking education to labour market
needs more closely would help improve employment and skills. Greater uptake of digital
technologies by firms, along with a modernised public sector and strong skills will
also help lift trend growth. Reaching the climate objective of net zero emissions
by 2050 will require bold policy action, both on the tax and the spending side.
SPECIAL FEATURE: REAPING THE BENEFITS OF DIGITALISATION
Published on October 20, 2022Also available in: French
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