Members of the Investors’ Forum, an association uniting the largest and most active investors in Lithuania’s economy, discussed the key challenges and priorities facing Lithuania’s economy and investment climate during their annual meeting with the Government. Business representatives emphasized that in a time of geopolitical uncertainty, Lithuania must both strengthen its national security and ensure a competitive, investment-friendly environment.
“Today, the economy and national security are inseparable. Without a strong economy, we will not be able to finance either defense or social welfare. Therefore, every decision must be assessed through the lens of competitiveness”, said Rolandas Valiūnas, Chairman of the Board of Investors’ Forum.
Investors positively assess the increase in defense funding and the government’s decisive steps regarding infrastructure development. However, the business community stresses that not only the scale of spending matters, but also its efficiency.
“Business supports investment in security. At the same time, we must ensure that government decisions are both swift and high-quality – from public procurement to the issuance of permits. Lengthy procedures undermine our competitiveness”, Valiūnas noted.
Productivity – the Key Condition for Growth
During the meeting, investors highlighted that in recent years wages have grown faster than labor productivity. Over time, this trend may weaken exporters’ positions in international markets.
“If we want to allocate more resources to defense and social welfare, we must become more productive. Catching up with more advanced EU countries in terms of productivity would allow budget revenues to grow without raising additional taxes”, said Vytautas Šilinskas, Executive Director of Investors’ Forum.
Representatives of the business community stressed that a more efficient public sector could significantly contribute to GDP growth and increased budget revenues. Business surveys indicate that bureaucracy remains one of the main challenges.
“Investors currently rate Lithuania’s business environment at 7 out of 10. That is not bad, but it is not sufficient for an ambitious country. More efficient processes, clearer rules, and faster decision-making would send a strong signal to both domestic and foreign investors”, V. Šilinskas said.
Talent Policy – the Weak Link
Significant attention was also devoted to talent-related issues. Demographic trends indicate a shrinking workforce, while the outcomes of the education system pose additional challenges. According to investors, Lithuania must strengthen its talent development system, more actively attract highly qualified professionals from abroad, and ensure that the education system focuses on practical skills and productivity.
Members of the association emphasized that Lithuania’s long-term success depends on mutual trust between government and business. They also encouraged the state to take a more proactive role in building and nurturing international partnerships.
One underutilized opportunity is more targeted engagement with the global Litvak community, encouraging its members to create and work in Lithuania. It was also proposed to consider declaring the Year of Lithuania and Poland as a strategic initiative to strengthen security, economic cooperation, and regional leadership.
According to the association, Lithuania has all the prerequisites to become one of the most successful countries in the region. However, this requires strengthening trust, ensuring regulatory stability, and adopting decisions that promote rather than restrict investment.
“Trust is the foundation of growth. If businesses see a predictable, professional, and investment-friendly state, investments will follow. Our goal is clear – Lithuania must become the most attractive investment destination in Europe. This requires not only ambition, but also the quality of everyday decision-making”, R. Valiūnas emphasized.
The Investors’ Forum association brings together around 80 large, reputable companies, many of which are leaders in their respective sectors. Operating since 1999, the association’s vision is for Lithuania to become the most attractive investment destination in Europe by 2030.