Economics, Investments, Lithuania, Markets and Companies

The pre-crisis investments in Lithuania accounted for 25% of GDP, but in 2009 they fell to 17.2% and saw a slight increase only in 2013, yet, remained lower than those in Latvia and Estonia.

The first quarter of this year exhibited signs of breakthrough as investment in tangible fixed assets grew by almost a third. However, the joy did not last long. The growth of investment in tangible fixed assets in the second quarter slowed down significantly and in the third quarter accounted for only 1.3%. Sluggish investment was probably the main reason of the slowdown in the country's economic growth.

The explanation for negative investment trends is obvious. Businesses are sensitive about the geopolitical tensions in the Russian-Ukrainian conflict region. Another evident factor in negative trends was Russia's food embargo and worsened economic growth forecasts in the main trading partners – the euro-zone countries and Russia.