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Lithuania's Investors' Confidence Index shows positive business expectations

Danuta Pavilenene, BC, Vilnius, 20.05.2014.Print version
Association Investors' Forum for the first time announced Lithuania's Investors' Confidence Index. Currently, at Q2 2014, its value is 1.101 iut of 2. The majority of investors' rate business development prospects positively. The investors expect increasing demand on goods and services, as well as creation of new jobs, informs BC Investors' Forum.

investorsforum.lt

Investors' Forum determined the Investors' Confidence Index by surveying 56 foreign capital, Lithuania-located companies. The companies assessed country's business environment, corporate investment plans and factors influencing their activities.


Investors' Forum partners Invest Lithuania and professional services company EY contributed to the preparation of the index. In the future, Investors' Forum will announce the index quarterly.

 

"When foreign investors choose where to expand their businesses, the biggest influence for their decisions comes from responses of their colleagues in a certain country. New qualitative indicator will allow foreign businessmen to get the most important information on Lithuania's economy, situation in the market and short-term development prospects in a simple, quick and, most importantly, direct way", – said Rolandas Valiunas, Investors' Forum Chairman of the Board.

 

"Investors' Forum is a long-term partner to the Government of Republic of Lithuania, and is providing suggestions and recommendations for improving the investment climate. As our experience shows, such index has been really necessary long ago in our country. It will be useful for forecasting investment flows, changes in the labor market, and observing business cycles in the nearest future. It will help to define factors that significantly influence the investment flows", – stated Ruta Skyriene, Investors' Forum Managing Director.

 

According to Investors' Forum analyst Gytis Trilikauskis, the index reveals that expectations of the majority of investors are positive for the second quarter of 2014. "Economic recovery encourages the investors to forecast development of their businesses. 43 percent of surveyed companies expect that demand of their production will increase", – noted Trilikauskis.

 

Acting Managing Director at Invest Lithuania Arvydas Arnasius emphasizes that the index is not only useful as helpful information for potential investors, but also as a tool for improving the investment climate: "Until now we were lacking a systematic summary of opinions of key investors in Lithuania. However, the index is more than just a source of information for companies considering Lithuania as their investment location. It also clearly shows what our goals should be if we want to improve the investment climate and Lithuania's competitiveness. I am happy to see that Invest Lithuania has already started working on most of the problem areas identified, and I hope that this index will be conducted and announced annually so that we can measure our progress."

 

It is expected that the number of jobs will continue to rise in Q2. According to the recent study, investors in Lithuania will increase the number of jobs by 37 percent in total.

The important alarm signal, however, is sent because of the shortage of a qualified labour power. This shortage is felt in 46 percent of surveyed companies.

 

The biggest concern for investors comes from the regulation of labour relations. Even 80 percent of surveyed companies stated this field as the one which needs the most improvement. 72 percent respondents name Lithuania's tax system as a problematic area. Also, 74 percent of companies are lacking transparency in Lithuania's business.






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