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.

• Telecommunications, transport and logistics infrastructure, and employees’ foreign language skills remain the most positively evaluated areas of the business environment in Lithuania.

• Investors think that the conditions for acquiring credit in the country will become more difficult in the near future. 37 percent of respondents believe that the situation will worsen.

• Business leaders remain consistent in assessing areas that require more state attention. Changes are most needed in the education system, the public sector, and the migration of talent. The energy market is also named as one of the most important areas this quarter.

• The main reason for the fall in the value of the index is the more moderate expectations of business representatives regarding business development opportunities.

• 41 percent of respondents say that their company’s profits will decrease in the near future.

• 35 percentage points fewer investors believe that employees’ salaries will continue to rise.

• 66 percent of surveyed investors believe that in order to reduce the scale of the shadow economy in Lithuania, it is important to open up as much data as possible. 82 percent of company managers positively evaluate the provision of the possibility to pay by a card or other electronic means in all shopping centers.

Full ICIL research (EN): here

More information:
Monika Gabalytė, Investors’ Forum Senior Analyst
monika.gabalyte@investorsforum.lt, +370 60403516