Executives of foreign capital companies investing in Lithuania tend to have confidence in the country’s economy and its prospects. Compared to previous years, investors are much more positive about the country’s business environment. The growing gap between labor costs and productivity is seen as the biggest challenge by business representatives, while political changes and economic tensions are also a concern for the respondents.
Investors‘ expectations are more moderate in this quarter. The value of the index fell slightly last quarter and fell further this quarter again. The results of this quarter reflect investors’ expectations after the start of the war in Ukraine and in the context of other challenging events. The value of the index fell slightly compared to the previous quarter (1.057) and currently stands at 1.025. On the other hand, comparing the value of the index with the same period a year ago, the change is significant. In the second quarter of last year, the value of the index was the highest since 2017. However, when the index value is greater than one, investors have more positive than negative expectations.
Investors‘ expectations are more moderate in this quarter. The value of the index fell slightly last quarter and fell further this quarter again. The index reached the value it had after the first quarantine in 2020. On the other hand, the value of the index remains above 1, meaning investors have more positive than negative expectations. At the beginning of the year, the index stands at 1,057 out of a 2 possible. For comparison, the value of the index was 1,139 last quarter. The best-valued areas that strengthen Lithuania’s attractiveness for investment are telecommunications, transport and logistics infrastructure, and employees’ foreign language skills.
Although the positivity is not as high as at the beginning of the year, investors’ confidence is still high – the value of the index remains at the before the quarantine level. The value of the ICIL is 1,139 out of 2 in this quarter.
The value of the Investors’ Confidence Index for Lithuania has been growing since the end of last year and reached 1,237 out of 2 possible in this quarter. The value of the index is not only growing, but also reached its highest value since the second quarter of 2017.
The value of the Investors’ Confidence Index for Lithuania (ICIL) has been growing since the last quarter and the current final value is 1,118 out of 2. Investors are more positive about the country’s business environment, and the value of the index exceeded the pre-quarantine value.
