Analytics, Demography, EU – Baltic States, Financial Services, Investments, Lithuania

Economist Zygimantas Mauricas said that the major part of the money leaves Lithuania for the things Lithuanian cannot produce itself, for example, natural resources. Lithuania has nothing to offer for them in exchange. Trade with Russia cost over LTL 3,000 for a Lithuanian in the year of 2010 alone, the economist noted.

A few billion litas every year flows from Lithuania to China. Lithuania also imports high-technology industrial products from Germany, Italy and even Poland, Mauricas said.

The economist suggests Lithuania should take example from Hungary or Slovakia to boost its exports by drawing investment to high technology industry and exporting companies. "Lithuania, though having a well-developed infrastructure of internet communications and telecommunications, exports far less computer and information services than its northern Baltic neighbours," the economist noted.

According to Mauricas, Lithuania should form an exports-driven tax system. This needs a reduction of taxes levied from labour force and capital, and an increase in the tax rates on consumption and property, writes LETA/ELTA.

The economist referred to Scandinavia as a perfect model of reducing dependence on imports of energy supplies. "A higher use of local renewable energy sources for Lithuania would allow killing two birds with one stone: creation of new jobs to cut the levels of emigration and smaller imports of gas and oil to reduce the emigration of money to the East," the Nordea Bank Lietuva economist said.