<hdr>The World Factbook 1994: Lithuania<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> Since independence in September 1991, Lithuania has made steady progress in developing a market economy. Over 40% of state property has been privatized and trade is diversifying with a gradual shift away from the former Soviet Union to Western markets. Nevertheless, the process has been painful with industrial output in 1993 less than half the 1991 level. Inflation, while lower than in most ex-Soviet states, has exceeded rates in the other Baltic states. Full monetary stability and economic recovery are likely to be impeded by periodic government backtracking on key elements of its reform and stabilization program as it seeks to ease the economic pain of restructuring. Recovery will build on Lithuanian's strategic location with its ice-free port at Klaipeda and its rail and highway hub in Vilnius connecting it with Eastern Europe, Belarus, Russia, and Ukraine, and on its agriculture potential, highly skilled labor force, and diversified industrial sector. Lacking important natural resources, it will remain dependent on imports of fuels and raw materials.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$12.4 billion (1993 estimate from the UN International Comparison Program, as extended to 1991 and published in the World Bank's World Development Report 1993; and as extrapolated to 1993 using official Lithuanian statistics, which are very uncertain because of major economic changes since 1990)
<item><hi format=bold>National product real growth rate:</hi> -10% (1993 est.)
<item><hi format=bold>National product per capita:</hi> $3,240 (1993 est.)
<item>• <hi format=ital>consumption per capita:</hi> 6,600 kWh (1992)
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<item><hi format=bold>Industries:</hi> employs 42% of the labor force; accounts for 23% of GOP shares in the total production of the former USSR are: metal-cutting machine tools 6.6%; electric motors 4.6%; television sets 6.2%; refrigerators and freezers 5.4%; other branches: petroleum refining, shipbuilding (small ships), furniture making, textiles, food processing, fertilizers, agricultural machinery, optical equipment, electronic components, computers, and amber
<item><hi format=bold>Agriculture:</hi> employs around 18% of labor force; accounts for 25% of GDP; sugar, grain, potatoes, sugar beets, vegetables, meat, milk, dairy products, eggs, fish; most developed are the livestock and dairy branches, which depend on imported grain; net exporter of meat, milk, and eggs
<item><hi format=bold>Illicit drugs:</hi> transshipment point for illicit drugs from Central and Southwest Asia and Latin America to Western Europe; limited producer of illicit opium; mostly for domestic consumption
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>recipient:</hi> US commitments, including Ex-Im (1992), $10 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $NA million; Communist countries (1971-86), $NA million
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<item><hi format=bold>Currency:</hi> introduced the convertible litas in June 1993
<item><hi format=bold>Exchange rates:</hi> litai per US$1—4 (fixed rate 1 May 1994); 3.9 (late January 1994)
<item><hi format=bold>Fiscal year:</hi> calendar year
