Analytics, EU – Baltic States, Forum, Investments, Lithuania, Markets and Companies

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 18:36

Investor sentiment towards Lithuanian economy escalating in 2014

Danuta Pavilenene, BC, Vilnius, 22.11.2014.Print version
Investor Confidence Index for Lithuania (ICIL) survey indicates increasing investor confidence in Lithuanian business environment. The upward trend has remain solid throughout the year and the overall index value reached 1.181 (out of maximum value of 2) in the last quarter of 2014. The positive expectations came through even despite the unpredictable geopolitical situation in Eastern Europe, reported BC ICIL press service.

Biggest influence of positive investor expectations is attributed to increasing political stability in the country, upcoming introduction of the Euro and improving business performance indicators – creation of additional workplaces, capital investments and boosting demand for products and services.

 

Report analysis is based upon the survey results of 62 participating companies of foreign capital in Lithuania carried out by the association of “Investors’ Forum”. Index value is calculated incorporating investor expectations about business environment, firm-specific factors and investment plans.



 

“ICIL results indicate that Lithuanian business has rebounded after the financial crisis. Companies has increased their flexibility and are more competitive, actively invest in expansion to catch up with growing demand in both domestic and foreign markets. It is also very important to note, that 95% of all survey participants evaluate Lithuanian political climate stability to be high or moderate. The private sector has put faith in controlling institutions and do not expect them to initiate radical or unprecedented reform. These aforementioned aspects alongside the upcoming introduction of the Euro increase Lithuania’s competitiveness and help to attract additional investors to Lithuania”, – commented Rolandas Valiunas, Chairman of Investors’ Forum.

 

A staggering 55% of investors expect the demand of their products or services to increase during the last quarter of the current year. It is the largest positive expectations of depamd prospects recorded since the launch of ICIL. What is more, an equal amount of 39% of ICIL participants express their plans to create additional workplaces and increase capital investments while 55 per cent are keeping investments flat.

 

“The report signals Lithuania’s advancement in improving business surrounding and strengthening of international competitiveness. However, there are still a lot of space for progress, focus should shift towards areas that in the utmost need of correction. Taxations system, over-taxation of labor deter investments and lowers the morale of the workforce. The scarcity of qualified labor remains a relevant issue to be adjusted – investors claim that the education system is failing to meet labor demand in the private sector” – said Ruta Skyriene, Investors’ Forum executive director.

 

 

Labor & employment relations as a troublesome are was singled-out by 66% of ICIL participants. Moreover, 61% of investors are missing a more effective and adamant fight with the shadow economy. Other areas of concern include taxation system, lack of transparency (44% both), education system (40%) and excessive regulations (31%).

 

“On the bright side, there are still areas that investors perceive as advantageous for Lithuania. About 73% of investors suggest that competitive labour force costs are among Lithuania’s most significant advantages in comparison with other economies. The talent pool and high level of infrastructure & logistics in the country traditionally are recognised through ICIL surveys as well. On the other hand, areas limiting business and economy growth also remain unresolved: labour & employment relations, taxation system, lack of transparency and excessive labor regulations” – said Gytis Trilikauskis, Investors’ Forum analyst.

 

Investor Confidence Index for Lithuania reflects the expectations towards Lithuanian business environment and investment climate change in the upcoming future through the perceptions of already existing investors. The goal of ICIL is to assess country’s business climate and Lithuania’s attractiveness for foreign investors based upon insights of already active investors in Lithuania.

 

You can review and download full ICIL report here.






Search site