Analytics, Economics, Forum, GDP, Investments, Lithuania

According to the figures of the World Economic Forum, last year, Lithuania directed only 4.5% of its gross domestic product (GDP) to the investment, related to manufacturing goods, in other words, to various technologies, machinery and manufacturing equipment. Lithuania ranks third from the bottom in the European Union (EU) according to these rates; in 2009, the country topped the bottom of the list. Rudzkis also said that Lithuania is the last one in the EU according to the rates of cumulative foreign investment per capita, informs LETA/ELTA.

"The figures in terms of macroeconomics are rather poor, thus, we should not rejoice over the fact that we attract the flow of foreign investment that equals to 1% of our DGP. Back in 2003, Lithuania would attract around 4, 5 or 6%," said the economist on Thursday's conference "Investment and Public Interest".

The chief analyst of the bank DnB Nord said that investment to Lithuania is hindered due to the reasons that Lithuanian business is very slowly laying the foundations for the economy's development in the future, there is no effective system of investment incentives, the tax system is far too complex, which impedes the accounting of small businesses. Also, a more active flow of investment is prevented by the inconsistency of economic policy, the position of local governments, regarding the attraction of the investment, the shortage of qualified labour force, heavy administrative burden on the businesses, cumbersome regulations, high level of corruption, the lack of state institutions' support to businesses, deeply rooted negative attitudes towards business, the lack of transparency in the judicial system and poorly developed air transportation.

The institution of public opinion and market research Vilmorus conducted a survey which revealed that the overall majority of the Lithuanian respondents (78%) agrees that Lithuania needs foreign investment, 13% of the respondents had a negative view of foreign investments. The reason of favourable attitude towards foreign investors is the creation of new jobs. Negative view of foreign investments is explained by the fear that foreign companies would create tense competition for local companies, also, because of sufficient number of Lithuanian companies. "The sentiment is very positive and this should be used. The conditions for business should be altered but we also should bear in mind that there might be some worrying aspects of foreign investment too. We should take that into consideration, react to it and remember for future," the head of Vilmorus, the social scientist Vladas Gaidys summarized the survey's results.