Section 12: BUSINESS, ECONOMY – INVESTMENTS
THE VOICE OF INTERNATIONAL LITHUANIA
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What are the prognoses for Lithuania’s economy 2011-2013?
Tue, 18th January, 2011 - Posted by - (2) Comment
Lithuania has become one of the biggest victims of the global economic crisis. The economy has shrunk dramatically and the hangover from Soviet rule continues to cast a long shadow over domestic politics and foreign affairs. Still, in a recent Hard Talk session with the BBC, Prime Minister Andrius Kubilius insisted that the country's economy is stabilising.
Most analyst believe that, in 2011, Lithuania’s GDP growth will be about 3 percent; exports will rise approximately 11 percent, while the average salary will go up 3 percent. The high unemployment rate will, however, remain one of the biggest problems. It will probably go down a bit, but it will remain high overall – about 16 percent. An unemployment decrease should be related to laying a general foundation for economic growth. It is very important not to adopt what at first sight seems attractive, but, at the end of the day could be situation-worsening decisions; this could be, for example, not to increase the minimum wage. The shadow economy will also remain a burning head ache for the government, and a very bright scenario for 2011 is therefore not likely.
Category : Business, economy, investments / Featured sub-section
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Again time to invest in Lithuania?
Tue, 18th January, 2011 - Posted by - (0) Comment
Category : Business, economy, investments
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The government’s budget structure – taxes and deficit handling
Tue, 18th January, 2011 - Posted by - (1) Comment
Lithuania’s budget deficit will remain “high” for several years, because of swelling government debt, and weigh on the country’s credit ratings, Moody’s Investor Service concluded in 2010. Lithuania’s economic recession, the deepest since the fall of communism 20 years ago, is undercutting the government’s efforts to narrow the budget gap, which swelled to about 9.5 percent of gross domestic product last year. The government of Prime Minister Andrius Kubilius cut spending and raised taxes to save about 9 percent of GDP last year. “The government’s budget deficit is still very high, and will remain high for several more years, causing a significant increase in government debt,” Orchard said. “We continue to assess the evolution of both the economy and government finances to determine whether the rating should remain at Baa1 or be downgraded to Baa2.” Moody’s rates Lithuania’s sovereign debt Baa1, the third- lowest investment grade.
The Moody rating, which was cut twice in 2009, has a negative outlook.…
Category : Business, economy, investments
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Inadequate financial markets
Tue, 18th January, 2011 - Posted by - (24) Comment
The Integrated Markets Model.
Consumers purchase products, and financial traders trade shares. Production firms link the consumer and financial markets, by selling products to consumers and offering their shares in the financial market.
Despite some progress in developing the domestic financial markets over the last two decades, the overall liquidity of the markets remain inadequate for any large scale development in Lithuania. At the same time, the corporate debt market remains negligible. Overall, among the potential factors hindering development of the securities markets in Lithuania are the small size of the domestic market, lack of institutional investors (pension funds, mutual funds etc.), prohibition of issuing debt securities denominated in foreign currencies domestically and a poor investment culture. For the above reasons the Lithuanian financial markets provide only limited resources for the private sector. For example, the value of private...…
Category : Business, economy, investments / Featured sub-section
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OPINIONS
Have your say. Send to:
editor@VilNews.com
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Greeks won, Lithuanians lost!
Before they realized what is going on and who was robbing them, the Lithuanian people got clubbered by PM Kubilius’ ambitious austerity policy and the younger ones started emigrating in catastrophic numbers, seeing no future in the country whose GDP was reduced (from a low post-Soviet level) by some 20% by the combination of the old nomenklatura rent-seeking policies and the global Great Recession. Lithuania is hollowing out, unfortunately.
Read more…... - A far too bright picture of the present reality
The above post from Val Samonis, where he compares “crisis-hit” Greece and a Lithuania supposed to be quickly recovering from the 2008 crisis, internationally praised for its austerity measures, calls for reflection.
The difference is that while the people of Greece protest and angrily demonstrate in the streets of Athens, people here only become more and more bitter, emigrate, begets crime in other countries, etc.
Lithuania's elderly and disadvantaged people who have seen their minimum pensions drastically cut, and mothers seeing that the child benefits are completely removed as concept, they bow their necks and become even more active in growing potatoes on their garden spots outside the city instead of standing up against the government’s unfair measures against them...
This country's politicians claim they have been the smartest in... - What is this country going to live on 20 years from now?
Palle Gravesen Jensen.
A Danish expat to Lithuania, owner of two manufacturing companies, Electronic House and Metalco Baltic. Member of the board of the Danish Chamber of Commerce (DCC) in Lithuania. His family was one of the three families founding the Vilnius International School.
There are a number of issues to discuss with regards to Lithuania of today, the country I made my own 16 years ago, moving from my homeland Denmark.
One particular question, however, comes to my mind again and again: What is this country going to live on 20 years from now. It is a big question. My concern is there will not be much at all if nothing is done immediately.... -
New Chairman of the Bank of Lithuania
Vitas Vasiliauskas
Friday the Seimas of the Republic of Lithuania decided to appoint Vitas Vasiliauskas as the Chairman of the Board of the Bank of Lithuania. The decision comes into force as of 16 April 2011.
The current Chairman of the Board of the Bank of Lithuania Reinoldijus Šarkinas congratulated Vitas Vasiliauskas on this occasion.
"I wished the new Chairman of the Board of the Bank of Lithuania all the best", said Reinoldijus Šarkinas.
The Chairman of the Board of the Bank of Lithuania is appointed for a term of five years by the Seimas of the Republic of Lithuania upon nomination by the President. The number of the terms of office is not limited.
Reinoldijus Šarkinas has been holding the position of the Chairman of the Board of the Bank of Lithuania since 15 February 1996. After the end of his term of office, the Seimas has authorised Reinoldijus Šarkinas to continue working as the Chairman of the Board of the Bank of Lithuania until 15 April 2011.... -
Independence day commemorationIn connection to this year’s Lithuanian Independence Day, it might be of your interest to know that in 1938 there was printed an unissued ten litu banknote commemorating the 20th anniversary of Lithuanian independence 1918-1938.
President Smetona and the Declaration of Independence is on the note’s face, and the Council of Lithuania is on the back. Smetona is interred in a mausoleum in Ohio.
Submitted by Frank Passic, Albion, Michigan....
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