This year, Lithuania joined the ranks of European Union leaders, ranking 9th in the region. According to Minister of the Economy and Innovation, Lukas Savickas, these results demonstrate international investors’ trust in Lithuania and that the country’s potential is recognized not only in words but also in action.
“Lithuania is rapidly moving forward on the global competitiveness map — our economy grew by 2.7%, and according to preliminary data, foreign direct investment reached €38.2 billion last year, marking a 7.6% increase. We aim to improve the business environment and become not only a growing economy but also a regional leader in innovation — to create high value-added solutions based on knowledge, talent, and technology. To achieve this, we are implementing the START plan and initiatives like the Investment Highway and Vytis, which will further enhance our country’s competitiveness,” says Mr. Savickas.
The IMD ranking assesses 69 countries worldwide, comparing them based on economic performance, government efficiency, business efficiency, and infrastructure.
The greatest breakthrough for Lithuania was in the economic performance category, where the country rose from 48th to 38th place. Strong contributing factors included successfully managed consumer price inflation, diversification of Lithuanian-origin exports (both by product and export market), and rapidly growing services exports.
As in the previous year, Lithuania achieved its highest score in the Business Efficiency category.
“Lithuania’s globally recognized competitiveness shows we’re on the right track. The high rating in business efficiency confirms that our companies can quickly adapt to change and successfully digitize. Lithuania is cultivating an environment where innovative, competitive, and globally minded businesses can thrive,” says Kotryna Tamoševičienė, Head of the Research and Analysis Unit at the Innovation Agency Lithuania.
The IMD ranking also highlights areas where Lithuania will need additional effort. Over the past year, the country’s rankings declined slightly in employment and tax policy. There is concern about rising youth unemployment and lower engagement among young people. According to 2024 data, the unemployment rate for youth under 25 in Lithuania reached 16.2%, placing the country 47th among the assessed economies (the 2024 average across all participating countries was 14.6%).
Other challenges noted in this year’s index include the negative impact of the war in Ukraine and geopolitical tensions on investment prospects, an aging population, slow productivity growth, and uncertainty about tariffs, which could hinder export growth.
The IMD World Competitiveness Ranking is one of the most widely recognized international indicators assessing how effectively countries create conditions for economic growth, business development, and innovation. Each country’s evaluation is based on both quantitative data (statistical indicators) and qualitative insights gathered through business leader surveys.
