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.

• Respondents continue to view the conditions for obtaining credit in the country positively.

• One-fifth of respondents say that the level of scientific research in Lithuania is low.

• The assessment of the stability of the political environment has deteriorated: 25 percent of company executives say it is low, and 4 out of 10 believe that political stability will decrease in the near future.

• Businesses are cautious about productivity growth, therefore there are concerns about the gap between wages and productivity.

• 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.

• Naming the main everyday problems, investors notice that most of them arise in matters related to the regulation of labor relations.

• 95 percent of company executives are positive about the growth of employees’ salaries in their companies. A quarter notes that the company’s profits are expected to decline in the coming period.

• The best-rated state institutions are the Center of Registers, the State Tax Inspectorate, the Customs Department, and the Fire Protection and Rescue Department. The Migration Department and the Migration Services receive the least positive evaluations.

Full ICIL research (EN): here

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