Lithuania has improved its competitiveness in the last 12 months and moved up the ladder by 5 places up to the 31 out of the 57 countries ranking, beating Estonia for the 1st time and leaving other neighboring economies far behind, shows the IMD World Competitiveness Yearbook 2009. The results of the Stress Test executed by IMD World Competitiveness Centre also reveal that Lithuania is better equipped to fare through the crisis and improve its competitiveness in the near future than its neighbours. According to this future oriented test, Lithuanian economy, standing 41 in the 57 country ranking, is more resilient to the world recession than Estonia, Poland and Russia, 43, 48, and 51, respectively.

Lithuania has witnessed a big leap forward in government efficiency, moving up from 36 to 25 and business efficiency (up from 41 to 35) as well as improving ratings in infrastructure category by three steps to 29. However, the economic performance, naturally, declined from 28 to 36. The best improvements were recorded in the evaluation of the brain drain, black market, immigration policies with many less local businesses saying that these factors had a negative effect on the economy and their businesses. The government policy was evaluated as more adaptable to changes in the economy with less bureaucracy and more intellectual property rights protection evidenced.

“The major declines came in the figures and evaluations of the widened government budget deficit, increase of inflation, GDP growth meltdown, availability of credit, and drop in the FDI to GDP ratio, as well as stringent labor rules and regulations. However, we have been seeing deflationary processes in the Lithuanian economy for the last few months and the government is very much focused on improving business environment in the country to boost FDI and exports and improve the competitiveness of Lithuania”, – says Mantas Nocius, Managing Director of the Lithuanian Development Agency.