Lithuania has been experiencing a strong growth pace for the last three years: GDP growth rate was 6.7% in 2004 and 6.8% in 2005. The IMF forecasts a 6.5% growth in 2006. Private consumption and investment are growth's main driving forces. Lithuanian workforce, although qualified and cheap, suffers from an important unemployment rate : 11.3% in 2005. Lithuanian economy's main weakness is its important trade deficit. Despite an increasingly dominant liberal model, Lithuania still faces persistent corruption problem and the underground economy which still represents 19% of GDP.
The agriculture sector provides 7% of GDP. Cereals (mainly wheat and barley), potatoes and breeding are the main productions. Forests are extensively exploited and wood-related business participates to 8% of the country's total exports. Mining natural resources are almost inexistent. The main industrial activities are linen, building and food-processing sectors. Capital goods, textile, electronics and computing are booming sectors. Services account for 60% of the GDP and oil transit activity between Russia and Europe amounts to 12%.
Lithuania has a very open market which carries on most of its exchanges with the European Union and became EU member on the 1st of May 2004. Lithuania's top import countries are Russia, Germany and Poland. Its top three export countries are Germany, Russia and Latvia. The country mainly imports hydrocarbons, capital goods, vehicles, chemicals and clothes.
