4. Export performance is robust
80
90
100
110
120
130
140
150
160
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Index 2005=100 Export performance¹
Lithuania
Latvia
Estonia
Poland
1. Export performance is measured as actual growth in exports relative to the growth of the country’s export market,
which represents the potential export growth for a country assuming that its market shares remain unchanged.
Source: OECD Economic Outlook database. 4
5. The budget is now in surplus
-10
-8
-6
-4
-2
0
2
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Government net lending, in % of GDP
Source: OECD Economic Outlook database.
5
7. Well-being could be improved
0
2
4
6
8
Housing
Income and jobs
Community
Education
Environment
Health
Life Satisfaction
Safety
OECD Lithuania Lowest OECD¹
1. Lowest OECD refer to the 17 countries with the lowest score among the OECD countries. Data are for 2016 or latest
available year.
Source : OECD Better life index indicators database; Eurostat; Gallup database; and World Bank World Development
Indicators.
7
8. The New Social Model improved labour
market flexibility…
0
0.5
1
1.5
2
2.5
3
3.5
NewZealand
UnitedStates
Canada
UnitedKingdom
Chile
Australia
Estonia
Ireland
Hungary
Japan
Switzerland
Lithuania(post-reform)
Iceland
Finland
Korea
Israel
SlovakRep.
OECD
Greece
Norway
Denmark
Turkey
Spain
Slovenia
Poland
Lithuania(pre-reform)
Austria
Sweden
Mexico
CzechRep.
Portugal
Luxembourg
France
Germany
Italy
Latvia
Netherlands
Belgium
Strictness of employment protection legislation: Regular workers
Scale from 0 (least restrictions) to 6 (most restrictions), latest year
Note: The indicator is calculated in disposable income after taxes and transfers.
Source: OECD Income Distribution and Poverty database.
8
9. … and unemployment benefits are
now more generous
Note: For Lithuania, the results for January and July 2017 represent the situation before and after introduction of the New
Social Model reform, respectively; 2015 for the remaining countries.
Source: OECD (2018), OECD Reviews of Labour Market and Social Policies: Lithuania, OECD Publishing, Paris.
0
10
20
30
40
50
60
70
80
90
100
Greece
Australia
NewZealand
UnitedKingdom
Sweden
Chile
Korea
Turkey
Estonia
Austria
Ireland
Germany
Hungary
Japan
UnitedStates
OECD
Lithuania(pre)
Spain
SlovakRep.
Poland
Iceland
Canada
CzechRep.
Norway
Finland
Slovenia
Italy
France
Netherlands
Denmark
Belgium
Switzerland
Portugal
Latvia
Lithuania(post)
Luxembourg
Israel
%
Net Replacement Rates for a single person in unemployment, 2015
Top-ups (in the 3d month)
Unemployment benefits (in the 3rd month)
Unemploymnet benefits and top-ups (in the 9th month)
9
10. Private sector debt and house prices
remain below historical peaks
Source: European Central Bank; OECD Economic Outlook database; and OECD House price index database.
30
40
50
60
70
80
80
120
160
200
240
280
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% of GDPIndex, 2007=100
Credit growth and housing prices
Nominal house prices Credit to private non-financial sector² (RHS)
10
11. Debt is falling but could decline
further
Note: Projected debt reduction paths under different deficit scenarios.
Source: OECD calculation.
10
15
20
25
30
35
40
45
50
55
60
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
% of GDP
No deficit Deficit 1% of GDP Deficit 0.5% of GDP
11
12. High social security contributions
reduce employability of the low-skilled
Source: OECD taxing wages database.
-10
0
10
20
30
40
50
60
Chile
Israel
Ireland
NewZealand
Mexico
Switzerland
Korea
Australia
UnitedKingdom
Netherlands
Canada
Iceland
Luxembourg
UnitedStates
Portugal
OECD
Norway
Japan
Spain
France
Greece
SlovakRep.
Estonia
Denmark
Turkey
Slovenia
Finland
Poland
Belgium
Italy
Lithuania
CzechRep.
Austria
Sweden
Latvia
Germany
Hungary
% of total labour cost
Decomposition of the tax wedge, 2016
Single without children 50% of the average wage
Income tax Social security contribution
12
13. Property taxes are low
Source: OECD Revenue statistics database; and Ministry of Finance of Lithuania.
0
0.5
1
1.5
2
2.5
3
3.5
Luxembourg
Switzerland
Mexico
Austria
CzechRep.
Turkey
Estonia
SlovakRep.
Germany
Norway
Lithuania
Slovenia
Ireland
Hungary
Chile
Sweden
Finland
Korea
Portugal
Latvia
Netherlands
OECD
Spain
Poland
Italy
Belgium
Denmark
Iceland
Australia
Japan
NewZealand
Israel
Greece
UnitedStates
France
Canada
UnitedKingdom
% of GDP
Property tax revenues
2016 or latest year available
13
14. Key recommendations for more
inclusive growth
• Set a debt target and establish a credible path to
reach it
• Reduce social security contributions, especially
for low-income workers
• Increase property taxation, while exempting
low-income households
• Assess spending efficiency by carrying out
spending reviews
• Actively use macro-prudential measures once
financial imbalances emerge
14
16. Labour productivity is low
Source: OECD Economic Outlook database.
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
Mexico
Chile
Latvia
Hungary
Estonia
Lithuania
Portugal
Poland
Greece
CzachRep.
Slovenia
NewZealand
Israel
SlovakRep.
Turkey
Korea
Japan
OECD
Spain
UnitedKingdom
Iceland
Germany
Italy
Finalnd
Canada
Austria
Australia
Netherland
Denmark
France
Sweden
Switzerland
Belgium
UnitedStates
Norway
Luxembourg
Ireland
Labour productivity, USD PPP per worker, 2017
16
17. The labour market is not very
inclusive
1. Calculated on the labour force aged 25-64.
2. Data refer to 2016.
Source: OECD Gender employment database
0
5
10
15
20
25
30
Men
Women
15-24
25-54
55-64
Low-skilled¹
Medium-skilled¹
High-skilled¹
Gender Age Educational attainment² Long-term
UNR²
%
Group-specific unemployment rates (UNR), 2017
Lithuania OECD
17
18. Informality is high
Source: Eurobarometer.
0
2
4
6
8
10
12
Poland European Union Lithuania Estonia Latvia
% of population aged
15+
People carrying out undeclared paid activities
18
19. Insolvency procedures are
cumbersome
1. The strength of insolvency framework index is a composite indicator of the quality of the insolvency framework
based on the time, cost and outcome of insolvency proceedings involving domestic legal entities.
Source: World Bank Doing business 2018 database.
0
2
4
6
8
10
12
14
16
Luxembourg
Lithuania
Turkey
NewZealand
Hungary
Ireland
Australia
Austria
Canada
France
UnitedKingdom
Belgium
Iceland
Mexico
Netherlands
Norway
Slovenia
OECD
Chile
Denmark
Greece
Latvia
Spain
Sweden
Switzerland
Israel
CzechRep.
SlovakRep.
Italy
Estonia
Japan
Korea
Poland
Finland
Portugal
Germany
UnitedStates
Scale from 0 (worst)
to 16 (best)
Strength of insolvency framework index (0-16), 2017
19
20. Firms and research institutions
could collaborate more
Source: Eurostat.
0
5
10
15
20
25
Italy
Latvia
Lithuania
Portugal
Greece
Poland
Spain
Ireland
Luxembourg
CzechRep.
France
Hungary
Slovakia
EU28
Germany
Netherlands
Estonia
Sweden
Denmark
United…
Slovenia
Belgium
Austria
Finland
% of innovating firms
Firms collaborating on innovation with higher education
or research institutions
20
21. Vocational education and training
should be strengthened
Source: OECD education at a Glance 2017.
0
10
20
30
40
50
60
70
80
Korea
Japan
Hungary
Lithuania
Chile
Greece
New…
Iceland
Spain
Estonia
Mexico
Sweden
Latvia
United…
Israel
France
Denmark
Portugal
Germany
OECD
Turkey
Norway
Poland
Italy
Australia
Belgium
Luxembourg
Switzerland
Slovenia
Netherlands
SlovakRep.
Austria
Finland
CzechRep.
%
Share of vocational students on upper secondary students, 2015
21
22. Social support is relatively weak
1. 2017 for Lithuania, with Heating Compensation ("Lithuania (HC)") and without ("Lithuania (no HC)").
Source: OECD (2018), OECD Reviews of Labour Market and Social Policies: Lithuania, OECD Publishing, Paris.
0
10
20
30
40
50
60
70
Italy
Turkey
Greece
Chile
Hungary
UnitedStates
Spain
Portugal
SlovakRep.
Israel
Latvia
Lithuania(noHC)
Canada
Korea
Estonia
OECD
NewZealand
Belgium
Sweden
France
Norway
CzechRepublic
Poland
Switzerland
Australia
Lithuania(HC)
Slovenia
Netherlands
Luxembourg
Austria
Finland
Germany
Iceland
Ireland
UnitedKingdom
Denmark
Japan
%
Net income from minimum-income benefits as a % of the median
equivalised household income, couple with two children, 2015¹
Net income from minimum-income benefits Poverty line
22
23. More should be done to get people
back to work
1. Active labour market programmes (categories 2-7) include: cover training, employment incentives, supported
employment and rehabilitation, direct job creation and start-up incentives.
Source: OECD Labour database.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Australia
Estonia
Latvia
Canada
Israel
New…
Slovak…
Slovenia
Greece
Lithuania
Germany
CzechRep.
Poland
Norway
OECD
Italy
Spain
Portugal
Switzerland
Ireland
Belgium
Netherlan…
Austria
Luxembo…
France
Hungary
Finland
Sweden
Denmark
% of GDP
Public expenditure in activation programmes¹
2015 or latest year available
23
24. Key recommendations for raising
productivity and inclusiveness
• Address skills mismatch by continuing the reform of the
education system at all levels
• Strengthen work-based learning, including apprenticeships
• Continue the reform of innovation policy and strengthen
collaboration between firms and research institutions
• Simplify bankruptcy procedures and facilitate
restructuring
• Increase investment in active labour market programmes
upon close monitoring of results
• Further increase the level of social assistance while
maintaining strong work incentives
24
26. The population is ageing
Source: United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population
Prospects.
0
10
20
30
40
50
60
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
% population 65+ on
population 15-64
Old age dependency ratio, projections, 2010 - 2060
Lithuania EU OECD
26
27. The pension system is not targeted
at the poor
Source: Eurostat.
0
5
10
15
20
25
30
35
40
45
SlovakRep.
Hungary
CzechRep.
France
Denmark
Luxembourg
Netherlands
Finland
Greece
Poland
Spain
Austria
EU
Italy
Belgium
Ireland
Sweden
UnitedKingdom
Germany
Slovenia
Portugal
Romania
Bulgaria
Croatia
Lithuania
Latvia
Estonia
% of population 65+
Old age population at risk of poverty, 2016
27
28. Life expectancy of men is low
Source: Eurostat Health statistics database.
0
10
20
30
40
50
60
70
80
Latvia
Estonia
Lithuania
SlovakRep.
Austria
Slovenia
Finland
Hungary
Portugal
Denmark
Switzerland
Poland
Luxembourg
France
CzechRep.
Netherlands
UnitedKingdom
EU28
Belgium
Greece
Germany
Spain
Ireland
Italy
Iceland
Norway
Sweden
Healthy life years at birth for men, 2016
28
29. Health care is too hospital-centric
Source: OECD Health Statistics database.
29
3.6
-10
-6.5
15.2
-2.1
2.2
-4.5 -4.4
12.3
-1.9
-15
-10
-5
0
5
10
15
20
Hospital care Outpatient care Long term care Medical goods Collective services
Percentage points
Health expenditure by function,
difference to OECD average
2004 2015
30. Participation in life-long learning is
low
Note: Data refer to the share of 25 to 64 year-olds who participated in education or training in the 4 weeks prior to
the survey.
Source: Eurostat (2017), Education and training statistics database.
0
5
10
15
20
25
30
35
SVK
POL
GRC
TUR
LTU
HUN
IRL
BEL
LVA
ITA
DEU
CZE
ESP
PRT
EU28
SVN
GBR
AUT
EST
LUX
FRA
NLD
NOR
ISL
FIN
DNK
SWE
CHE
%
Participation rate in lifelong education or training, 25-64 year-olds, 2016
30
32. Key recommendations for an
ageing society
• Continue moving pensions from the pay-as-you go (first)
pillar to the funded (second) pillar
• Fund the wage-independent basic pension through the
general budget rather than social contributions
• Continue reorganising the hospital sector and improve
outpatient and long-term care
• Provide financial incentives for life-long learning to firms
and employees, especially older
• Reach out better to emigrants and ease restrictions for
high-skilled immigrants
• Extend and improve support for childcare, to help
parents reconcile work and family 32
33. For more information
33
• Disclaimers: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use
of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the
West Bank under the terms of international law.
• This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the
delimitation of international frontiers and boundaries and to the name of any territory, city or area.
http://www.oecd.org/eco/surveys/economic-survey-lithuania.htm
@OECD
@OECDeconomy