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117-560: Kančioginas − village in Lithuania , Ignalina District Municipality , Ignalina part of south, Sirvėta Regional Park edge, Utena County . 5 kilometres northwest of Ceikiniai village. Peculiar planned rural structure, valuable folk architectural complex. Western village stream flows Kančiogina , southwest of the lake lies there Kančioginas lake . Lithuania – in Europe (green & dark grey) – in
234-451: A 2019 Forest Landscape Integrity Index mean score of 1.62/10, ranking it 162nd globally out of 172 countries. Lithuanian ecosystems include natural and semi-natural (forests, bogs , wetlands and meadows), and anthropogenic (agrarian and urban) ecosystems. Among natural ecosystems, forests are particularly important to Lithuania, covering 33% of the country's territory. Wetlands (raised bogs, fens , transitional mires, etc.) cover 7.9% of
351-536: A combined workforce of 3.3 million people, with 1.5 million of these working people living in Lithuania. GDP growth reached its peak in 2008, and was approaching the same levels again in 2018. Similar to the other Baltic States, the Lithuanian economy suffered a deep recession in 2009, with GDP falling by almost 15%. After this severe recession, the country's economy started to show signs of recovery already in
468-765: A constant growth of foreign trade. By 1998, the economy had survived the early years of uncertainty and several setbacks, including a banking crisis. However, the collapse of the Russian ruble in August 1998 shocked the economy into negative growth and forced the reorientation of trade from Russia towards the West. Lithuania was invited to the Helsinki EU summit in December 1999 to begin EU accession talks in early 2000. After
585-816: A decisive Polish–Lithuanian victory in the Battle of Grunwald in 1410 and by concluding the Treaty of Melno in 1422. In the 15th century the strengthened Grand Duchy of Moscow renewed the Muscovite–Lithuanian Wars for the Lithuanian-controlled Eastern Orthodox territories. Due to the unsuccessful beginning of the Livonian War , loss of land to the Tsardom of Russia , and pressure by monarch Sigismund II Augustus ,
702-428: A few plausible versions. Since Lietuva has a suffix (- uva ), there should be a corresponding original word with no suffix. A likely candidate is Lietā . Because many Baltic ethnonyms originated from hydronyms , linguists have searched for its origin among local hydronyms. Usually, such names evolved through the following process: hydronym → toponym → ethnonym . Lietava , a small river not far from Kernavė ,
819-510: A five-year term and serving a maximum of two terms. The president oversees foreign affairs and national security, and is the commander-in-chief of the military. The president also appoints the prime minister and, on the latter's nomination, the rest of the cabinet, as well as a number of other top civil servants and the judges for all courts except the Constitutional Court. The current Lithuanian head of state, Gitanas Nausėda
936-457: A fragmented multi-party system, with a number of small parties in which coalition governments are common. Ordinary elections to the Seimas take place on the second Sunday of October every four years. To be eligible for election, candidates must be at least 21 years old on the election day, not under allegiance to a foreign state and permanently reside in Lithuania. Persons serving or due to serve
1053-450: A new law that ensured greater diversity of privatization methods and that enabled participation in the selling process without vouchers. Between 1996 and 1998, 526 entities were sold for more than €0.7 billion. Before the reforms, the public sector totally dominated the economy, whereas the share of the private sector in GDP increased to over 70% by the 2000 and 80% in 2011. Monetary reform
1170-620: A presence in Lithuania. Lithuanian FEZs ( Free economic zone ) offer developed infrastructure, service support, and tax incentives. A company set up in an FEZ is exempt from corporate taxation for its first six years, as well as a tax on dividends and real estate tax. 7 FEZ operate in Lithuania – Marijampolė Free Economic Zone , Kaunas Free Economic Zone , Klaipėda Free Economic Zone , Panevėžys Free Economic Zone , Akmenė Free Economic Zone , Šiauliai Free Economic Zone , Kėdainiai Free Economic Zone . There are nine industrial sites in Lithuania, which can also provide additional advantages by having
1287-715: A resolution, featuring the aspiration for the restoration of Lithuania's sovereignty and military alliance with Germany and elected the Council of Lithuania . In 1918, the short-lived Kingdom of Lithuania was proclaimed; however on 16 February 1918 the Council of Lithuania adopted the Act of Independence of Lithuania which restored Lithuania as democratic republic with its capital in Vilnius and separated that state from all state relations that existed with other nations. In 1918–1920
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#17328024395301404-429: A sentence imposed by the court 65 days before the election are not eligible. Also, judges, citizens performing military service, and servicemen of professional military service and officials of statutory institutions and establishments may not stand for election. Homeland Union – Lithuanian Christian Democrats won the 2020 Lithuanian parliamentary elections and gained 50 of 141 seats in the parliament. In October 2020,
1521-627: A sound fiscal position. The 2017 budget resulted in a 0.5% surplus, with the gross debt stabilising at around 40% of the GDP. The budget remained positive in 2017, and was expected to continue to do so in 2018. Lithuania is ranked 11th in the world in the Ease of Doing Business Index prepared by the World Bank Group , 16th out of 178 countries in the Index of Economic Freedom , measured by The Heritage Foundation and 8th out of 165 countries in
1638-778: A supporter of a close Polish–Lithuanian union, the Lithuanian nobility agreed to conclude the Union of Lublin in 1569 with the Crown of the Kingdom of Poland , which created a new federative Polish–Lithuanian Commonwealth with a joint monarch (holding both titles of the King of Poland and Grand Duke of Lithuania), but Lithuania remained a separate state from Poland with its own territory (~300 000 km2), coat of arms, management apparatus, laws, courts, seal, army, treasury, etc. After concluding
1755-409: A well-developed infrastructure, offering consultancy service and tax incentives. Lithuania is ranked third among developed economies by the quantity (16) of Special Economic Zones – after USA (256) and Poland (21). Lithuanian municipalities provide special incentives to investors who create jobs or invest in infrastructure. Municipalities may tie designation criteria to additional factors, such as
1872-537: Is not farmed, and acts as an ecological niche for weeds and invasive plant species. Habitat deterioration is occurring in regions with very productive and expensive lands as crop areas are expanded. Currently, 18.9% of all plant species, including 1.87% of all known fungi species and 31% of all known species of lichens, are listed in the Lithuanian Red Data Book . The list also contains 8% of all fish species. The wildlife populations have rebounded as
1989-467: Is now Lithuania travelled less and engaged in local hunting, gathering and fresh-water fishing. The Indo-Europeans , who arrived in the 3rd – 2nd millennium BC, mixed with the local population and formed various Baltic tribes . The Baltic tribes did not maintain close cultural or political contacts with the Roman Empire , but they did maintain trade contacts via the amber road . From the 9th to
2106-703: Is the largest, Tauragnas is the deepest and Asveja is the longest lake in Lithuania. After a re-estimation of the boundaries of the continent of Europe in 1989, Jean-George Affholder, a scientist at the Institut Géographique National (French National Geographic Institute), determined that the geographic centre of Europe was in Lithuania, at 54°54′N 25°19′E / 54.900°N 25.317°E / 54.900; 25.317 ( Purnuškės (centre of gravity) ) , 26 kilometres (16 mi) north of Lithuania's capital city of Vilnius . Affholder accomplished this by calculating
2223-592: The 2023 NATO summit was held in Vilnius. Lithuania is located in the Baltic region of Europe and covers an area of 65,300 km (25,200 sq mi). It lies between latitudes 53° and 57° N , and mostly between longitudes 21° and 27° E (part of the Curonian Spit lies west of 21°). It has around 99 kilometres (61.5 mi) of sandy coastline, only about 38 kilometres (24 mi) of which face
2340-521: The Balts . Up to the 4th century, Lithuanian tribes maintained close trade contacts with the Roman Empire via Aquileia processing center and Carnuntum . Amber was the main good provided to the Roman Empire from Baltic Sea coast, via a long route called the Amber Road . Afterwards, the trading ties persisted with the central European tribes, fostering a consistent exchange of goods. Alongside
2457-517: The Crown of the Kingdom of Poland . The two realms were united into the bi-confederal Polish-Lithuanian Commonwealth in 1569, forming one of the largest and most prosperous states in Europe. The Commonwealth lasted more than two centuries, until neighbouring countries gradually dismantled it between 1772 and 1795, with the Russian Empire annexing most of Lithuania's territory. Towards
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#17328024395302574-538: The Economic Freedom of the World 2021 by Fraser Institute . On average, more than 95% of all foreign direct investment in Lithuania comes from European Union countries. Sweden is historically the largest investor with 20% – 30% of all FDI in Lithuania. FDI into Lithuania spiked in 2017, reaching its highest ever recorded number of greenfield investment projects. In 2017, Lithuania was the third country, after
2691-635: The European Union (green) – [ Legend ] Lithuania , officially the Republic of Lithuania , is a country in the Baltic region of Europe . It is one of three Baltic states and lies on the eastern shore of the Baltic Sea , bordered by Latvia to the north, Belarus to the east and south, Poland to the south, and the Russian semi-exclave of Kaliningrad Oblast to
2808-581: The French invasion of Russia has established the puppet Lithuanian Provisional Governing Commission to support his war efforts, however after Napoleon's defeat the Russian rule was reinstated in Lithuania. During the November Uprising (1830–1831) the Lithuanians and Poles jointly attempted to restore their statehoods, however the Russian victory resulted in stricter Russification measures:
2925-593: The Grand Duchy of Lithuania 's territory, which reached ~650,000 km2 in the first half of the 14th century. At the end of the 14th century Lithuania was the largest country in Europe . In 1385, Lithuania formed a dynastic union with Poland through the Union of Krewo . Furthermore, in the late 14th–15th centuries patrilineal members of the Lithuanian ruling Gediminids dynasty ruled not only Lithuania and Poland, but Hungary , Croatia , Bohemia , and Moldavia . The German attacks on Lithuania were ceased with
3042-473: The Hanseatic league , offering free access to his domains for men of every order and profession from nobles and knights to tillers of the soil. Economic immigrants and immigrants, seeking religious freedom improved the level of handicrafts. During the reign of Duke Kęstutis (1297–1382), the first cash taxes were introduced, although most taxes were still paid in goods (e.g., wheat, cattle, horses). In 1569
3159-558: The International Tax Competitiveness Index , confirming its attractiveness for business. In the Index of Economic Freedom , this European country ranks 15th, and 11th in the Ease of Doing Business Index , underscoring its status as one of the most favorable jurisdictions for entrepreneurship in Europe. Cumulative foreign direct investment (FDI) in 2017 was EUR 14.7 billion, or 35 per cent of GDP, EUR 5215 per capita. The largest FDI flow in Lithuania
3276-492: The Latvian language , which is closely related to Lithuanian. The history of Lithuania dates back to settlements founded about 10,000 years ago. The first people settled in the territory of Lithuania after the last glacial period in the 10th millennium BC : Kunda , Neman and Narva cultures . They were traveling hunters. In the 8th millennium BC, the climate became warmer, and forests developed. The inhabitants of what
3393-687: The Lithuanian Soviet Socialist Republic was $ 8,591, which was above the average for the rest of the Soviet Union of $ 6,871 but lagging behind developed western countries. The Soviet era brought Lithuania intensive industrialization and economic integration into the USSR, although the level of technology and state concern for environmental, health, and labor issues lagged far behind Western standards. Urbanization increased from 39% in 1959 to 68% in 1989. From 1949 to 1952
3510-528: The Lithuanian litas , was introduced in 1922. It proved to become one of the strongest and most stable currencies in Europe during the inter-war period. Lithuania had a monometalism system where one litas was covered by 0.150462 grams of gold stored by the Bank of Lithuania in foreign countries. Litas remained stable even in the period of Great Depression . During the time of its independence, 1918–1940, Lithuania made substantial progress. For example, Lithuania
3627-534: The Nemunas River basin occupying 74% of the territory of the country. Due to the construction of dams, approximately 70% of spawning sites of potential catadromous fish species have disappeared. In some cases, river and lake ecosystems continue to be impacted by anthropogenic eutrophication . Agricultural land comprises 54% of Lithuania's territory (roughly 70% of that is arable land and 30% meadows and pastures), approximately 400,000 ha of agricultural land
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3744-566: The Nordic-Baltic Eight (NB8) regional co-operation format. The first known record of the name of Lithuania ( Lithuanian : Lietuva ) is in a 9 March 1009 story of Saint Bruno in the Quedlinburg Chronicle . The Chronicle recorded a Latinized form of the name Lietuva: Litua (pronounced [litua] ). Due to lack of reliable evidence, the true meaning of the name is unknown and scholars still debate it. There are
3861-453: The OECD . Dalia Grybauskaitė was the first female President of Lithuania (2009–2019) and the first to be re-elected for a second consecutive term. On 24 February 2022, Lithuania declared a state of emergency in response to the 2022 Russian invasion of Ukraine . Together with seven other NATO member states, it invoked NATO Article 4 to hold consultations on security. On 11–12 July 2023,
3978-707: The Polish–Lithuanian Commonwealth formed through the union of the Kingdom of Poland and the Grand Duchy of Lithuania. The economy of the Commonwealth was dominated by feudal agriculture based on the exploitation of the agricultural workforce (serfs). Poland–Lithuania played a significant role in supplying 16th-century Western Europe with exports of three sorts of goods: grain (rye), cattle (oxen) and fur. These three articles amounted to nearly 90% of
4095-486: The Red Army was expelled from its territory, however in a few days Lithuania was occupied by Nazi Germany . In 1944 Lithuania was re-occupied by the Soviet Union and Soviet political repressions along with Soviet deportations from Lithuania resumed. Thousands of Lithuanian partisans and their supporters attempted to militarily restore independent Lithuania, but their resistance was eventually suppressed in 1953 by
4212-468: The Republic of Ireland and Singapore by the average job value of investment projects. Based on OECD data, Lithuania is among the top 5 countries in the world by postsecondary (tertiary) education attainment. This educated workforce attracted investments, especially in the ICT sector during the past years. The Lithuanian government and the Bank of Lithuania simplified procedures for obtaining licences for
4329-629: The Russian financial crisis , the focus of Lithuania's export markets shifted from East to West. In 1997, exports to the Soviet Union's successor entity (the Commonwealth of Independent States ) made up 45% of total Lithuanian exports. This share of exports dropped to 21% of the total in 2006, while exports to EU members increased to 63% of the total. Exports to the United States made up 4.3% of all Lithuania's exports in 2006, and imports from
4446-491: The Russian language has been introduced in all government institutions, Vilnius University was closed in 1832, and theories that Lithuania was a "Western Russian" state since its establishment were propagated. Subsequently, the Lithuanians once again tried to restore statehood by participating in the January Uprising (1863–1864), but yet another Russian victory resulted in even stronger Russification policies with
4563-523: The Soviet authorities and their collaborators . Jonas Žemaitis , the chairman of the Union of Lithuanian Freedom Fighters , was captured and executed in 1954, his successor as chairman Adolfas Ramanauskas was brutally tortured and executed in 1957. Since the late 1980s Sąjūdis movement sought for the restoration of independent Lithuania and in 1989 the Baltic Way was held. On 11 March 1990,
4680-545: The Supreme Council announced the restoration of Lithuania's independence. Lithuania became the first Soviet-occupied state to announce the restitution of independence. On 20 April 1990, the Soviets imposed an economic blockade by ceasing to deliver supplies of raw materials to Lithuania. Not only domestic industry, but also the population started feeling the lack of fuel, essential goods, and even hot water. Although
4797-643: The World War II concluded the Soviet–Lithuanian Mutual Assistance Treaty . In 1940 Lithuania has accepted the Soviet ultimatum and recovered the control of historical capital Vilnius, however the acceptance resulted in the Soviet occupation of Lithuania and its transformation into the Lithuanian Soviet Socialist Republic . In 1941 during the June Uprising in Lithuania it was attempted to restore independent Lithuania and
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4914-574: The centre of gravity of the geometrical figure of Europe. Lithuania has a temperate climate with both maritime and continental influences. It is defined as humid continental (Dfb) under the Köppen climate classification (but is close to oceanic in a narrow coastal zone). Average temperatures on the coast are −2.5 °C (27.5 °F) in January and 16 °C (61 °F) in July. In Vilnius,
5031-454: The current account from −15.5 in 2007 to 1.6 in 2009. Economic sentiment and confidence of all business activities have rebounded from a record low at the beginning of the year 2009. Sectors related to domestic consumption and real estate still suffer from the economic crisis, but exporters have started making profits even with lower levels of revenue. The catalysts of growing profit margins are lower raw material prices and staff expense. At
5148-478: The new constitution . There were intense debates concerning the constitution, particularly the role of the president. A separate referendum was held on 23 May 1992 to gauge public opinion on the matter, and 41% of voters supported the restoration of the President of Lithuania . Through compromise, a semi-presidential system was agreed on. The Lithuanian head of state is the president, directly elected for
5265-522: The real union Lithuania and Poland jointly managed to reach military successes during the Livonian War, occupation of Moscow (1610), war with Sweden (1600–1611) , Smolensk war with Russia (1632–1634) , etc. In 1588, Sigismund III Vasa personally confirmed the Third Statute of Lithuania where it was stated that Lithuania and Poland have equal rights within the Commonwealth and ensured
5382-406: The renewable energy sources. In 2016, Lithuania introduced especially effective container deposit legislation , which resulted in collecting 92% of all packagings in 2017. Lithuania does not have high mountains and its landscape is dominated by blooming meadows, dense forests and fertile fields of cereals. However, it stands out by the abundance of hillforts , which previously had castles where
5499-636: The separation of powers . The real union strongly intensified the Polonization of Lithuania and Lithuanian nobility. The mid-17th century was marked with disastrous military loses for Lithuania as during the Deluge most of the territory of Lithuania was annexed by the Tsardom of Russia and even Lithuania's capital Vilnius was fully captured for the first time by a foreign army and ravaged. In 1655, Lithuania unilaterally seceded from Poland, declared
5616-584: The Żeligowski's Mutiny the Polish forces captured Vilnius Region and established a puppet state of the Republic of Central Lithuania , which in 1922 was incorporated into Poland. Consequently, Kaunas became the temporary capital of Lithuania where the Constituent Assembly of Lithuania was held and other primary Lithuanian institutions operated until 1940. In 1923, the Klaipėda Revolt
5733-629: The 11th centuries, coastal Balts were subjected to raids by the Vikings . The first written record of the name for the country dates back to 1009 AD. Facing the German threat , Mindaugas in the middle of the 13th century united a large part of the Baltic tribes and founded the State of Lithuania, while in 1253 he was crowned as the Catholic King of Lithuania . Moreover by taking advantage of
5850-463: The 1960s. A warming trend has persisted since then. Lithuania experienced a drought in 2002, causing forest and peat bog fires. After the restoration of Lithuania's independence in 1990, the Aplinkos apsaugos įstatymas (Environmental Protection Act) was adopted already in 1992. The law provided the foundations for regulating social relations in the field of environmental protection, established
5967-650: The 19th country to use the euro. The Vilnius Stock Exchange, now renamed the NASDAQ OMX Vilnius , started its activity in 1993 and was the first stock exchange in the Baltic states. In 2003, the VSE was acquired by OMX. Since 27 February 2008 the Vilnius Stock Exchange has been a member of NASDAQ OMX Group, which is the world's largest exchange company across six continents, with over 3,800 listed companies. The market cap of Vilnius Stock Exchange
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#17328024395306084-409: The 3rd quarter of 2009. It returned to growth in 2010, with a positive 1.3 outcome and with 6.6 per cent growth during the first half of 2011. The country is one of the fastest growing economies in the EU. GDP growth had resumed in 2010, albeit at a slower pace than before the crisis. The success of the crisis taming is attributed to the austerity policy of the Lithuanian government. Lithuania has
6201-470: The Baltic Sea were inhabited by various Baltic tribes . In the 1230s, Lithuanian lands were united for the first time by Mindaugas , who formed the Kingdom of Lithuania on 6 July 1253. Subsequent expansion and consolidation resulted in the Grand Duchy of Lithuania , which by the 14th century was the largest country in Europe. In 1386, the Grand Duchy entered into a de facto personal union with
6318-415: The Belarusian border in what became known as the Medininkai Massacre . On 17 September 1991, Lithuania was admitted to the United Nations . On 25 October 1992, citizens voted in a referendum to adopt the current constitution . On 14 February 1993, during the direct general elections, Algirdas Brazauskas became the first president after the restoration of independence. On 31 August 1993 the last units of
6435-562: The Crusaders, fighting alongside other Baltic tribes, but was unable to militarily assist the Old Prussians in their Great Uprising . Traidenis' main residence was in Kernavė . From the late 13th century members of the Lithuanian Gediminids dynasty began ruling Lithuania, who consolidated a hereditary monarchy and the status of Vilnius as permanent capital city , christianized Lithuania and by incorporating East Slavs ' territories (e.g. principalities of Minsk , Kyiv , Polotsk , Vitebsk , Smolensk , etc.) significantly expanded
6552-557: The Eurostat's data, in 2017, the value of Lithuanian exports recorded the most rapid growth not only in the Baltic countries, but also across Europe, which was 16.9 per cent. Lithuania performs well in few measures of well-being in the Better Life Index by OECD, ranking above the average in education and skills, and work-life balance. It is below the average in income and wealth, jobs and earnings, housing, health status, social connections, civic engagement, environmental quality, personal security, and subjective well-being. Lithuanian people are
6669-774: The GDP with just 50% of the population. In 2023-Q3 Vilnius County was the only one with the average salary above the national average, while Utena County had the lowest with 20% below it. In order to achieve balanced regional distribution of GDP, nine public industrial parks (Akmene Industrial Park, Alytus Industrial Park, Kedainiai Industrial Park, Marijampolė Industrial Park, Pagegiai Industrial Park, Panevėžys Industrial Park, Radviliskis Industrial Park, Ramygala Industrial Park and Šiauliai Industrial Park) and three private industrial parks (Tauragė Private Industrial Park, Sitkunai Private Industrial Park, Ramučiai Private Logistic and Industrial Park) were established to provide some tax incentives and prepared physical infrastructure. In 2022,
6786-446: The Lithuanian lands began in the late 12th century. King Mindaugas was the first Catholic King of Lithuania in 1253. The expansion of the Grand Duchy of Lithuania reached its height in the middle of the 14th century under the Grand Duke Gediminas (reigned 1316–1341), who established a strong central government which later came to dominate the territories from the Baltic Sea to the Black Sea . Grand Duke Gediminas issued letters to
6903-421: The Lithuanians defended the statehood of Lithuania during the Lithuanian Wars of Independence with Bolsheviks , Bermontians and Poles . The aims of the newly restored Lithuania clashed with Józef Piłsudski 's plans to create a federation ( Intermarium ) in territories previously ruled by the Jagiellonians . The Lithuanian authorities prevented the 1919 Polish coup attempt in Lithuania and in 1920 during
7020-410: The Seimas, and the Chairman of the Supreme Court,. The unicameral Lithuanian parliament, the Seimas , has 141 members who are elected to four-year terms. 71 of the members of its members are elected in single-member constituencies, and the others in a nationwide vote by proportional representation . A party must receive at least 5% of the national vote to be eligible for any of the 70 national seats in
7137-442: The Seimas. Lithuania was one of the first countries in the world to grant women a right to vote in the elections. Lithuanian women were allowed to vote by the 1918 Constitution of Lithuania and used their newly granted right for the first time in 1919. By doing so, Lithuania allowed it earlier than such democratic countries as the United States (1920), France (1945), Greece (1952), Switzerland (1971). Lithuania exhibits
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#17328024395307254-439: The Soviets abolished private ownership in agriculture, establishing collective and state farms. Production declined and did not reach pre-war levels until the early 1960s. The intensification of agricultural production through intense chemical use and mechanization eventually doubled production but created additional ecological problems. This changed after independence, when farm production dropped due to difficulties in restructuring
7371-523: The Swedish King Charles X Gustav as the Grand Duke of Lithuania and fell under the protection of the Swedish Empire . However, by 1657 Lithuania was once again a part of the Polish–Lithuanian Commonwealth following the Lithuanian revolt against the Swedes. Vilnius was recaptured from the Russians in 1661. In the second half of the 18th century the Polish–Lithuanian Commonwealth was three times partitioned by three neighboring countries which completely dissoluted both independent Lithuania and Poland from
7488-475: The Union of Soviet Socialist Republics (USSR) occupied Lithuania in 1940. Land and the most important objects for the economy were nationalized, and most of the farms collectivized. Just after one year of occupation, poverty level, unemployment increased dramatically, lack of food products appeared. Later, many inefficient factories and industry companies, highly dependent on other regions of USSR, were established in Lithuania. Despite that, in 1990, GDP per capita of
7605-404: The United States comprised 2% of total imports. Foreign direct investment (FDI) in 2005 was €0.8 billion. On 2 February 2002 the litas was pegged to the euro at a rate of 3.4528 to 1, which remained until Lithuania adopted the euro in 2015. Lithuania was very close to introducing the euro in 2007, but the inflation level exceeded the Maastricht requirements . On 1 January 2015, Lithuania became
7722-440: The activities of e-money and payment institutions. positioning the country as one of the most attractive for the financial technology initiatives in the EU. The history of Lithuania can be divided into seven major periods. All the periods have some interesting and important facts that affected the economic situation of the country in those times. The first Lithuanians formed a branch of an ancient ethno-linguistic group known as
7839-557: The agricultural sector. The overall damage, resulted from the Soviet occupation (including the loss of gross domestic product), estimated according to the UN recognised methodologies amounted to approximately US$ 800 billion; direct damage (including genocide and deportations of the citizens, property looting) estimation is US$ 20 billion. According to a 2019 study by economic historians, Lithuania had above average economic growth from 1937 to 1973 (when compared to other economies), but below average growth from 1973 to 1990. Reforms since
7956-457: The ancient Lithuanians burned altars for pagan gods. Lithuania is a particularly watered region with more than 3,000 lakes, mostly in the northeast. The country is also drained by numerous rivers, most notably the longest Nemunas . Lithuania is home to two terrestrial ecoregions: Central European mixed forests and Sarmatic mixed forests . Forest has long been one of the most important natural resources in Lithuania. Forests occupy one-third of
8073-486: The average temperatures are −6 °C (21 °F) in January and 17 °C (63 °F) in July. During the summer, 20 °C (68 °F) is common during the day, while 14 °C (57 °F) is common at night; in the past, temperatures have reached as high as 30 or 35 °C (86 or 95 °F). Some winters can be very cold. −20 °C (−4 °F) occurs almost every winter. Winter extremes are −34 °C (−29 °F) in coastal areas and −43 °C (−45 °F) in
8190-405: The basic rights and obligations of legal and natural persons in preserving the biodiversity inherent in Lithuania, ecological systems and the landscape. Lithuania agreed to cut carbon emissions by at least 20% of 1990 levels by 2020 and by at least 40% by 2030, together with all European Union members. Also, by 2020 at least 20% (27% by 2030) of the country's total energy consumption should be from
8307-417: The blockade lasted for 74 days, Lithuania did not renounce the declaration of independence. Gradually, economic relations were restored. However, tensions peaked again in January 1991. Attempts were made to carry out a coup using the Soviet Armed Forces , the Internal Army of the Ministry of Internal Affairs and the USSR Committee for State Security ( KGB ). Because of the poor economic situation in Lithuania,
8424-451: The core area of the early Lithuanian state and a possible first capital of the eventual Grand Duchy of Lithuania , is usually credited as the source of the name. However, the river is very small and some find it improbable that such a small and local object could have lent its name to an entire nation. On the other hand, such naming is not unprecedented in world history. Artūras Dubonis proposed another hypothesis, that Lietuva relates to
8541-441: The country's exports to western markets by overland and maritime trade. There was even a Lithuanian trading vessel – vytinė , used for four hundred years to transport grain via Nemunas river. Statutes of Lithuania were the main collections of law statements and rules for nearly three centuries since being published in 1529. The Commonwealth was famous for Europe's first and the world's second modern codified national constitution,
8658-495: The country's territory and timber-related industrial production accounts for almost 11% of industrial production in the country. Lithuania has five national parks , 30 regional parks , 402 nature reserves , 668 state-protected natural heritage objects. In 2018 Lithuania was ranked fifth, second to Sweden (first 3 places were not granted) in the Climate Change Performance Index (CCPI). It had
8775-412: The country, with 70% of wetlands having been lost due to drainage and peat extraction between 1960 and 1980. Changes in wetland plant communities resulted in the replacement of moss and grass communities by trees and shrubs, and fens not directly affected by land reclamation have become drier as a result of a drop in the water table. There are 29,000 rivers with a total length of 64,000 km in Lithuania,
8892-536: The east of Lithuania. The average annual precipitation is 800 mm (31.5 in) on the coast, 900 mm (35.4 in) in the Samogitia highlands, and 600 mm (23.6 in) in the eastern part of the country. Snow occurs every year, and it can snow from October to April. In some years, sleet can fall in September or May. The growing season lasts 202 days in the western part of the country and 169 days in
9009-424: The eastern part. Severe storms are rare in the eastern part of Lithuania but common in the coastal areas. The longest records of measured temperature in the Baltic area cover about 250 years. The data show warm periods during the latter half of the 18th century, and that the 19th century was a relatively cool period. An early 20th-century warming culminated in the 1930s, followed by a smaller cooling that lasted until
9126-484: The edge of the North European Plain . Its landscape was smoothed by the glaciers of the last ice age , and is a combination of moderate lowlands and highlands. Its highest point is Aukštojas Hill at 294 metres (965 ft) in the eastern part of the country. The terrain features numerous lakes ( Lake Vištytis , for example) and wetlands, and a mixed forest zone covers over 33% of the country. Drūkšiai
9243-404: The election day and reside in Lithuania for at least three years, in addition to satisfying the eligibility criteria for a member of the parliament. Same President may serve for not more than two terms. Gitanas Nausėda was elected as an independent candidate in 2019 and re-elected in 2024 . Each municipality in Lithuania is governed by a municipal council and a mayor , who is a member of
9360-485: The end of World War I , Lithuania declared Independence in 1918, founding the modern Republic of Lithuania. In World War II , Lithuania was occupied by the Soviet Union , then by Nazi Germany , before being reoccupied by the Soviets in 1944. Lithuanian armed resistance to the Soviet occupation lasted until the early 1950s. On 11 March 1990, a year before the formal dissolution of the Soviet Union , Lithuania became
9477-500: The end of 2017, investment of Lithuania's enterprises abroad amounted to EUR 2.9 billion. The largest investment was made in Netherlands (24.1 per cent of the total direct investment abroad), Cyprus (19.8 per cent), Latvia (14.9 per cent), Poland (10.5 per cent) and Estonia (10.3 per cent). Lithuania's direct investment in the EU member states totalled EUR 2.6 billion, or 89.3 per cent of the total direct investment abroad. Based on
9594-751: The first Soviet republic to break away when it proclaimed the restoration of its independence . Lithuania is a developed country with a high income , advanced economy , ranking 37th in the Human Development Index (HDI) and 19th in the World Happiness Report . Lithuania is a member of the European Union , the Council of Europe , the eurozone , the Nordic Investment Bank , the Schengen Agreement , NATO , and OECD . It also participates in
9711-632: The forces in Moscow thought the coup d'état would receive strong public support. People flooded to Vilnius to defend the Supreme Council of the Republic of Lithuania and independence. The coup ended with a few casualties and material loss. The Soviet Army killed 14 people and injured hundreds. A large part of the Lithuanian population participated in the January Events . On 31 July 1991, Soviet paramilitaries killed 7 Lithuanian border guards on
9828-580: The former Soviet Army left Lithuania. On 31 May 2001, Lithuania joined the World Trade Organization (WTO). Since March 2004, Lithuania has been part of NATO . On 1 May 2004, it became a full member of the European Union , and a member of the Schengen Agreement in December 2007. On 1 January 2015, Lithuania joined the eurozone and adopted the European Union's single currency. On 4 July 2018, Lithuania officially joined
9945-535: The group of very high human development countries and is a member of the WTO and OECD . In the 1990s, Lithuania rapidly moved from a centrally planned economy to a market economy , implementing numerous liberal reforms. It enjoyed high growth rates after joining the European Union along with the other Baltic states, leading to the notion of a Baltic Tiger . Lithuania's economy (GDP) grew more than 500 percent since regaining independence in 1990. The Baltic states have
10062-657: The happiest people in the Baltic States. On 1 January 2015, Lithuania became the 19th country to adopt the euro. Joining the euro would relieve the Bank of Lithuania of defending the value of the litas, and "it would give Lithuania a say in the decision-making of the European Central Bank (ECB), as well as access to the ECB single-resolution fund and cheaper borrowing costs". In 2024, Lithuania ranks 9th in
10179-442: The hunting became more restricted and urbanization allowed replanting forests (forests already tripled in size since their lows). Currently, Lithuania has approximately 250,000 larger wild animals or 5 per each square kilometre. The most prolific large wild animal in every part of Lithuania is the roe deer , with 120,000 of them. They are followed by boars (55,000). Other ungulates are the deer (~22,000), fallow-deer (~21,000) and
10296-562: The introduction of the Lithuanian press ban , pressure of the Catholic Church in Lithuania and Mikhail Muravyov-Vilensky 's repressions. The Lithuanians resisted Russification through an extensive network of Lithuanian book smugglers , secret Lithuanian publishing and homeschooling. Moreover, the Lithuanian National Revival , inspired by Lithuanian history, language and culture, laid the foundations for
10413-578: The largest one: moose (~7,000). Among the Lithuanian predators, foxes are the most common (~27,000). Wolves are, however, more ingrained into the mythology as there are just 800 in Lithuania. Even rarer are the lynxes (~200). The large animals mentioned above exclude the rabbit , ~200,000 of which may live in the Lithuanian forests. Since Lithuania declared the restoration of its independence on 11 March 1990, it has maintained strong democratic traditions. It held its first independent general elections on 25 October 1992, in which 56.75% of voters supported
10530-577: The majority of Lithuania. During the administration of the Lithuanian lands by the Russian Empire from 1772 to 1917, one of the most important events that affected economic relations was the emancipation reform of 1861 in Russia. The reform amounted to the liquidation of serf dependence previously suffered by peasants; it boosted the development of capitalism . However, Lithuania, as did its neighbouring provinces, remained an agricultural supplier for
10647-400: The mayor is elected directly by the majority of residents of the municipality. Social Democratic Party of Lithuania won most of the positions in the 2015 elections (372 municipal councils seats and 16 mayors). Economy of Lithuania The economy of Lithuania is the largest economy among the three Baltic states . Lithuania is a member of the European Union and belongs to
10764-479: The mid-1990s led to an open and rapidly growing economy. Open to global trade and investment, Lithuania now enjoys high degrees of business, fiscal, and financial freedom. Lithuania is a member of the EU and the WTO , so regulation is relatively transparent and efficient, with foreign and domestic capital subject to the same rules. The financial sector is advanced, regionally integrated, and subject to few intrusive regulations. One of Lithuania's most important reforms
10881-464: The most prized commodity of amber, items such as leathers , furs , beeswax , and limited algicultural productss were among the other traded commodities. The connections can be seen through the shared name for amber - the Hungarian gyanta, gyantar are closely related to the Lithuanian gintaras . It's still debated which language group could have loaned the word from another. Consolidation of
10998-450: The municipal council. The number of members, elected on a four-year term, in each municipal council depends on the size of the municipality and varies from 15 (in municipalities with fewer than 5,000 residents) to 51 (in municipalities with more than 500,000 residents). 1,524 municipal council members were elected in 2015. Members of the council, with the exception of the mayor, are elected using proportional representation. Starting with 2015,
11115-472: The number of jobs created or environmental benefits. Strategic investors' benefits could include favorable tax incentives for up to ten years. Municipalities may grant special incentives to induce investments in municipal infrastructure, manufacturing, and services. About 40 percent of surveyed investors confirmed that they are carrying out Research and experimental development (R&D) or plan to do it in their Lithuanian branches. In 2018 Lithuania ranked as
11232-566: The open Baltic Sea , less than the other two Baltic states. The rest of the coast is sheltered by the Curonian sand peninsula. Lithuania's major warm-water port , Klaipėda , lies at the narrow mouth of the Curonian Lagoon (Lithuanian: Kuršių marios ), a shallow lagoon extending south to Kaliningrad . The country's main and largest river, the Nemunas River , and some of its tributaries carry international shipping. Lithuania lies at
11349-498: The other hand, rapid growth caused some imbalances in inflation and balance of payments . The current account deficit to GDP ratio in 2006–2008 was in the double digits and reached its peak in the first quarter of 2008 at a threatening 18.8%. This was mostly due to rapid loan portfolio growth as Scandinavian banks provided cheap credit under quite lax rules in Lithuania. The volume of loans to acquire lodgings has grown from 50 million LTL in 2004 up to 720 million LTL in 2007. Consumption
11466-530: The political map in 1795 after a failed Kościuszko Uprising and short-lived recapture of capital Vilnius in 1794. Most of Lithuania's territory was annexed by the Russian Empire , while Užnemunė [ lt ] was annexed by Prussia . Following the annexation the Russian Tsarist authorities implemented Russification policies in Lithuania, which then made a part of a new administrative region Northwestern Krai . In 1812 Napoleon during
11583-674: The post Industrial Revolution European markets. Lithuania had stagnant economic growth in the interwar period (1919–1940). Its GDP growth resembled newly established agricultureal states such as Estonia and Poland. Lithuania's economy did not undergo contraction during the Great Depression. On 16 February 1918, the Council of Lithuania passed a resolution for the re-establishment of the Independent State of Lithuania. Soon, many economic reforms for sustainable economic growth were implemented. A national currency, called
11700-466: The prime ministerial candidate of Homeland Union-Lithuanian Christian Democrats (TS-LKD) Ingrida Šimonytė formed a centre-right coalition with two liberal parties. The President of Lithuania is the head of state of the country, elected to a five-year term in a majority vote. Elections take place on the last Sunday no more than two months before the end of current presidential term. To be eligible for election, candidates must be at least 40 years old on
11817-533: The reestablishment of an independent Lithuania. The Great Seimas of Vilnius was held in 1905 and its participants has adopted resolutions which demanded a wide autonomy for Lithuania. During World War I the German Empire annexed Lithuanian territories from the Russian Empire and they became a part of Ober Ost . In 1907, the Lithuanians organized the Vilnius Conference which adopted
11934-654: The second most attractive location for manufacturers in the Manufacturing Risk Index 2018. In 2019, Lithuania was 16th in Top 20 European FDI destination countries list, created by the Ernst & Young . Lithuania is divided into ten counties. There are four cities with a population over 100,000 and two cities of over 50,000 people. The gross regional product is concentrated in the two largest counties – Vilnius and Kaunas . These two counties account for 2/3 of
12051-413: The sector with the highest number of companies registered in Lithuania is Services with 53,386 companies followed by Unknown industry and Wholesale Trade with 50,660 and 26,974 companies respectively. One of the most important sub-sectors is information and communication technologies (ICT). Around 37,000 employees work for more than 2,000 ICT companies. ICT received 9.5% of total FDI. Lithuania hosts 13 of
12168-611: The so-called Constitution of 3 May , declared on 3 May 1791 (after the 1788 ratification of the United States Constitution ). Economic and commercial reforms, previously shunned as unimportant by the Szlachta , were introduced, and the development of industries was encouraged. Following the partitions of the Polish–Lithuanian Commonwealth in 1772, 1793 and 1795, the Russian Empire controlled
12285-422: The southwest, with a maritime border with Sweden to the west. Lithuania covers an area of 65,300 km (25,200 sq mi), with a population of 2.88 million. Its capital and largest city is Vilnius . Other major cities are Kaunas , Klaipėda , Šiauliai and Panevėžys . Lithuanians belong to the ethnolinguistic group of the Balts and speak Lithuanian . For millennia, the southeastern shores of
12402-577: The weakened territory of the former Kievan Rus' due to the Mongol invasion , Mindaugas incorporated Black Ruthenia into Lithuania. After Mindaugas' assassination in 1263, pagan Lithuania was again a target of the Christian crusades of the Teutonic Knights and Livonian Order . Traidenis during his reign (1269–1282) reunified all Lithuanian lands and achieved military successes against
12519-403: The word leičiai (plural of leitis ). From the middle of the 13th century, leičiai were a distinct warrior social group of the Lithuanian society subordinate to the Lithuanian ruler or the state itself. The word leičiai is used in 14–16th century historical sources as an ethnonym for Lithuanians (but not Samogitians ) and is still used, usually poetically or in historical contexts, in
12636-603: Was elected on 26 May 2019 by unanimously winning in all municipalities of Lithuania in the second election round. He was re-elected in 2024, winning more than 74% of the run-off votes. The judges of the Constitutional Court ( Konstitucinis Teismas ) serve nine-year terms. The court is renewed by a third every three years. The judges are appointed by the Seimas, on the nomination of the President, Chairman of
12753-482: Was 17% in 2008 compared to 11% in 1998. The share of total employment in the financial sector in 2008 has doubled compared with 1998. Between 2000 and 2017, the Lithuanian GDP grew by 308%. One of the most important factors contributing to Lithuania's economic growth was its accession to the WTO in 2001 and the EU in 2004, which allows free movement of labour, capital, and trade among EU member states. On
12870-442: Was affected by credit expansion as well. This led to high inflation of goods and services, as well as trade deficit . A housing bubble was formed. The global credit crunch which started in 2008 affected the real estate and retail sectors. The construction sector shrank by 46.8% during the first three-quarters of 2009 and the slump in retail trade was almost 30%. GDP plunged by 15.7% in the first nine months of 2009. Lithuania
12987-640: Was into manufacturing (EUR 73.7 million), agriculture, forestry, fishery (EUR 27.4 million), information and communication (EUR 10 million). Sweden, The Netherlands and Germany have remained the largest investors. Lithuania seeks to become an innovation hub by 2020. To reach this goal, it is putting its efforts into attracting FDI to added-value sectors, especially IT services, software development, consulting, finance, and logistics. Well-known international companies such as Microsoft , IBM , Transcom , Barclays , Siemens , SEB , TeliaSonera , Paroc , Wix.com , Philip Morris , Thermo Fisher Scientific established
13104-517: Was organized which unified the Klaipėda Region with Lithuania. The 1926 Lithuanian coup d'état replaced the democratically elected government and president with an authoritarian regime led by Antanas Smetona . In the late 1930s Lithuania has accepted the 1938 Polish ultimatum , 1939 German ultimatum and transferred the Klaipėda Region to Nazi Germany and following the beginning of
13221-694: Was the privatization of state-owned assets. The first stage of privatization was being implemented between 1991 and 1995. Citizens were given investment vouchers worth €3.1 billion in nominal value, which let them participate in assets selling. By October 1995, they were used as follows: 65% for acquisition of shares; 19% for residential dwellings; 5% for agricultural properties; and 7% remained unused. More than 5,700 enterprises with €2.0 billion worth of state capital in book value were sold using four initial privatization methods: share offerings; auctions; best business plans competitions; and hard currency sales. The second privatization step began in 1995 by approving
13338-492: Was the last among the Baltic states to be hit by recession because its GDP growth rate in 2008 was still positive, followed by a slump of more than 15% in 2009. In the third quarter of 2009, compared to the previous quarter, GDP again grew by 6.1% after five-quarters with negative numbers. Austerity policy (four-fifths of the fiscal adjustment consisted of expenditure cuts) introduced by the Kubilius government helped to balance
13455-659: Was the third-ranking flax producer and exporter in the world market (export of flax constituted about 30 percent of all export share ), being surpassed only by Soviet Russia and Poland; Lithuanian farm products such as meat, dairy products, many kinds of grain, potatoes, etc. were of superior quality in the world market. Lithuanian farmers were joining into cooperative companies – e.g. Lietūkis , Pienocentras , Linas , which helped farmers to process and sell their products more efficiently and profitably. Having taken advantage of favorable international developments, and driven by its foreign policy aims directed against Lithuanian statehood,
13572-573: Was undertaken in the early nineties to improve the stability of the economy. Lithuania chose a currency board system controlled by the Bank of Lithuania independent of any government institution. On 25 June 1993, the Lithuanian litas was introduced as a freely convertible currency, but on 1 April 1994 it was pegged to the United States dollar at a rate of 4 to 1. The mechanism of the currency board system enabled Lithuania to stabilize inflation rates to single digits. The stable currency rate helped to establish foreign economic relations, therefore leading to
13689-410: Was €3.4 billion on 27 November 2009. During the last decade (1998–2008) the structure of Lithuania's economy has changed significantly. The biggest changes were recorded in the agricultural sector as the share of total employment decreased from 19.2% in 1998 to just 7.9% in 2008. The service sector plays an increasingly important role. The share of GDP in financial intermediation and real estate sectors
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