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2014.03.21 14:05

Lithuania ranks third in Cushman and Wakefied emerging markets manufacturing index

DELFI|The Lithuania Tribune2014.03.21 14:05

Lithuania outranked Bulgaria, the Czech Republic, Hungary, and Slovenia in the real estate company’s first “High Growth Locations” index for the manufacturing industry, Invest Lithuania reported.

 Lithuania outranked Bulgaria, the Czech Republic, Hungary, and Slovenia in the real estate company’s first “High Growth Locations” index for the manufacturing industry, Invest Lithuania reported.

This year, the company compiled a “High Growth Locations” index for the first time as a complement to its annual Manufacturing Index. Lithuania ranked third in this emerging markets index, with the company reporting that it offers very good business conditions and costs, but still presents relatively high business risk.

Manufacturing investment projects in Lithuania, as a proportion of total investment, have significantly exceeded that of the rest of the EU since 2008. Between 2008 and 2013, 25 per cent of foreign investors in Lithuania invested in manufacturing. Manufacturing in Lithuania currently accounts for 21 percent of gross value added (GVA).

However investment in the manufacturing sector is declining in Lithuania and in other Central and Eastern European (CEE) countries. In these countries, manufacturing investment averaged 32 percent of all investment projects. The higher percentage of investment in manufacturing in the CEE is determined by the fact that some countries in the region have historically-established manufacturing competencies, for example, in the automotive industry.

The company said Lithuania could further improve its attractiveness to manufacturing investments by increasing its energy independence and ensuring a more stable economic situation.