Why is Lithuania’s economy doing better than Estonia’s? | News

Tadas Povilauskas. Source: Private library

“We see the need for this because the threat is very clear and present,” said Emilis Ružele, director-general of the Lithuanian Confederation of Industrialists. “The business community is united; we were one of the initiators of the initiative to raise defense spending to 4 percent of GDP. The business community takes security and stability very seriously, and we believe it’s time to act.”

However, business leaders argue that the recently imposed banking tax has harmed the business environment in Lithuania.

So, who is wealthier and living better at the moment – Estonians or Lithuanians?

“Estonians are still wealthier, but we are catching up. When we talk about purchasing power – how much we can buy, especially when shopping in Poland – Lithuanians have a higher purchasing power,” Mauricas explained.

“A meal at a restaurant in Estonia is more expensive than in Lithuania, and an average Lithuanian wage earner can afford more. But the differences aren’t that large, and I think we are simply following Estonia’s path, just as you had rapid IT sector growth in the last decade,” Povilauskas added.

More important than friendly rivalry, however, is ensuring that our region, situated along the borders of Russia and Belarus, remains a good and secure place to do business and that investors continue to see it as such.

“It’s like the Latin saying: ‘If you want peace, prepare for war.’ That’s what we need to do, and at the same time, we need to promote our region as a competitive and high-tech area, which we increasingly are,” said Mauricas.

There is an energy among those walking along Gediminas Avenue. The sixth and seventh reasons for Lithuania’s newfound prosperity could also be attributed to growing consumer confidence and the fact that many Lithuanians who had previously moved abroad are starting to return home.

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Source:
“AK. Nädal”

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Publish date : 2024-10-20 23:54:00

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