Despite the recession of 2023 and the challenges posed by emigration, Lithuania has ample opportunity to drive growth through innovation, particularly in the technology sector.

Having exited the Covid-19 crisis successfully, Lithuania’s economy was growing fast until early 2022, buoyed by rising exports and rapid integration into global value chains. 

Then came Russia’s invasion of Ukraine, which slowed growth and led to some of the highest levels of inflation in the euro area, driven by high energy and food prices. The slump carried through to 2023, when real GDP is estimated to have contracted by 0.3 per cent,…