The Covid-19 pandemic has put the world economy to one of its greatest tests in the last century. Compared to other EU member states, Lithuania’s economy has suffered relatively little. The pandemic has had a negative impact on the industrial sector, but some companies’ sales have grown even more than in 2019.
According to Cushman & Wakefield data, Lithuania stands among the most attractive countries for industrial investment, ranking favourably in the TOP12 in terms of cost criteria. The firm’s cost scenario places greater emphasis on cost reduction to give a higher score to countries where operating costs, including labour, are lower. Lithuania also makes it into the world’s TOP24 according to “bouncebackability”. The bouncebackability rating evaluates a country’s ability to restart its manufacturing sector after confinement restrictions are removed.
A survey of industrial companies operating in Lithuania indicates that autumn 2020 results will be worse than those for 2019. On the other hand, there are industrial leaders, whose sales are growing and are forecast to exceed those for 2019. That will undoubtedly have a positive effect on the overall results for the year. During this period, trade with Scandinavia has especially boosted sales in the industrial sector.
Discover the variation of the GDP in Europe during the pandemic.
In Lithuania, 20% of the total GDP is generated by industry.
As economic conditions around the world have changed, there are Lithuanian companies searching abroad for customers, partners with which to merge and opportunities to establish new business entities. Companies are prepared for integration because they are orientated to digitization processes and productivity improvement, to better compete in world markets.
A second option for foreign investors is construction of factories and business expansion in Lithuania, where exceptional tax and legal conditions have been established for business in Free Economic Zones. A team of professional managers provides comprehensive assistance to companies seeking to invest in Lithuania.