Statistics Lithuania has published a summary of key economic indicators for the previous year. In 2021, wages in Lithuania increased, but most of the effect was cancelled out by inflation.
Lithuania’s GDP in 2021 was 55.4 billion euros. It increased by 5.1% from the year before.
Among sectors that grew the most last year were retail and services (+2.6%) and manufacturing (+2.1%). Final taxes increased by 0.5% in 2021.
The largest production increase was in the sectors of chemical products (+45.6%), motor vehicles and trailers (+39.9%), other vehicles and equipment (+34.9%), metals (+28.9%), as well as computers, electronics and optical products (+28.2%).
GDP growth and economic stability were among the highest in the EU, according to Boguslavas Gruzevskis, head of the Lithuanian Centre for Social Sciences.
“This shows that we can function even more efficiently in the future and be more confident about economic growth,” he said.
At 10.6%, the annual inflation rate recorded in December 2021 was the highest in the last five years.
High inflation was driven by 24.6% price hikes of housing-related goods and services, including water, electricity, gas and other fuels.
Last year, prices of transport goods and services grew by 17.8%, as well as by 10.4% for food and non-alcoholic drinks.
In 2021, the average annual inflation rate, based on the harmonized consumer price index, was 2.9% in the EU, compared to 4.6% in Lithuania.
Real estate prices in Lithuania reached record highs last year. They increased by 18.9% in the third quarter in 2021, compared to the same period a year before.
Last year, the average monthly wage before tax increased by almost 10%, to 1,568 euros in Lithuania. The average wage after tax was 995.3 euros.
Real wages adjusted to inflation increased by 4.1% in 2021.
The highest net wages were earned by workers in information and communication sectors (around 1,721 euros), financial and insurance activities (around 1,612) and professional, scientific and technical activities (around 1,230 euros).
The median after-tax wage was 804 euros, i.e. half the country’s workforce earned 804 euros or less.
Last year, Lithuania exported goods worth 34.5 billion euros, with imports amounting to 37.5 billion euros. Compared to a year before, exports in 2021 increased by 20.3% and imports by 28.5%.
Russia, Latvia, Germany and Poland were the major destinations of Lithuanian exports between January and November last year.
Lithuania’s main exports were in the chemical and related industries (14.9%), machinery and electrical equipment (13.5%) and mineral products (10%).
Similarly, the country mostly imported machinery and mechanical equipment (17.8%), mineral products (17.3%) and chemical and related products (12.2%).
Cumulative foreign direct investment in Lithuania increased by 4.1% last year. In September 2021, it amounted to 24.8 billion euros.
Germany was the largest investor in Lithuania, followed by Sweden, Estonia, the Netherlands, Hong Kong, Poland and Cyprus.
Lithuania’s cumulative direct investment abroad increased by 4.4% last year and amounted to 9 billion euros in September 2021.
The largest investments were made in the US, Latvia, Estonia, Cyprus and the Netherlands. (LRT/Business World Magazine)