Title: Good Luck or Good Policy? The Economic Phenomenon of Lithuania. What can explain Lithuania’s recent economic development?
Type of Publication: Policy review
Author: Marius Jurgilas
The aim of this policy report is to understand the reasons behind Lithuania’s economic growth and to offer practical insights for Latvian policymakers.
Over the past fifteen years, Lithuania has emerged as the leading economy in the Baltic region, surpassing both Latvia and Estonia. The report analyzes the key factors that have enabled such rapid growth, including well-considered policy decisions, a clear strategic vision, and the ability to adapt to global challenges.
The report is structured into four chapters. The author presents a data-driven analysis, highlighting Lithuania’s investments in digital infrastructure, education, energy, and innovation. Particular emphasis is also placed on the role of foreign direct investment and labor market reforms in promoting national economic growth. A comparison with Latvia and Estonia illustrates how long-term strategic planning and effective governance can significantly foster economic development.