This decline was determined by a negative change in valuation of almost all areas. More negative expectations about the macroeconomic environment in the country and much more cautious valuations of possible growth of salaries, new jobs and investment in surveyed companies have contributed to the decline of the index.
Investors emphasize the need for focus on improving highly sensitive areas such as education, talent migration and efficiency of the public sector. Investors mention the same areas as the most important for the fourth quarter in a row.
Investors remain consistent when asked about telecommunications, transport and logistics infrastructure and the foreign language skills of the employees. These areas were marked as the strongest advantages of the current business environment in Lithuania. Respondents’ expectations regarding these areas are also the most positive.
Major Lithuanian and foreign investors are more cautious in assessing the situation and expectations for the coming quarter. 57 percent of those surveyed believe that their employees’ salaries will continue to rise, however, this figure is 20 percent lower than in the second quarter of this year. It is also 7 percent less than in the fourth quarter of last year when the index also fell sharply. Negative changes are also visible in investors’ expectations regarding new workplaces in their companies. Compared with the second quarter of this year, the number of investors claiming that the number of new employees will increase has fallen twice.
Read the full report here.