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Even in the face of the second wave of the virus, the Lithuanian economy, which has so far suffered less from the pandemic than most EU countries, has a fairly good starting position for qualitative change in the economy, increasing competitiveness. of Lithuania in the future. We must not only focus on solutions and measures that help to survive safely in the near future, but also plan various advances and focus on the long term, ”said V. Vasiliauskas in the report.
“One of these measures is carefully evaluated and high-quality public investments and innovations, laying the foundation for a modern, digital and environmentally friendly future of Lithuania’s economy and synergy with private investments,” he added.
Even in the face of the second wave of the virus, the Lithuanian economy, which has so far suffered less from the pandemic than most EU countries.
According to V. Vasiliauskas, investments, innovations and people with adequate training and skills are the main long-term sources of increased labor productivity, which would contribute to the transition towards an economy with greater added value. The higher value-added goods and services produced in Lithuania would allow the population to increase their income more quickly and bring it closer to or even higher than the Western European average.
According to the latest data, Lithuania’s GDP per capita, taking into account price differences, was 57% a decade ago and already reaches 82%. Average and real wages in the EU (adjusted for inflation) have increased by 54 percent over the decade. The basis for this growth is increased labor productivity, but lately it has been growing at half as slow as wages.
According to V. Vasiliauskas, in the long term this trend, when labor productivity increases more slowly than wages, is not sustainable and can slow down income growth, at the same time it has negative consequences for the competitiveness of the country’s economy in the markets. external. Increased investment and public sector investment that complements or enables private investment would help meet this challenge.
Private sector investment in Lithuania is forecast to decline by more than 13% this year, but with the private sector’s propensity to invest in decline, investment in Lithuania should support $ 5.8 billion. The DNA Plan for the Future Economy, which could be financed in part by the EU’s Economic Recovery and Resilience Fund, has been allocated to Lithuania for an amount of almost 2.5 billion euros. euros.
V. Vasiliauskas emphasizes that these funds should be invested after careful evaluation of costs and long-term returns, focusing on the quality of the projects and not on quantity. At present, significant investments are envisaged in the ADN infrastructure plan, but technological progress requires, in particular, investments in staff skills development programs, education and lifelong learning.
“The first area that comes to mind is RND. Investigation and development, research and development – BNS) (…) Here’s an area that we should really focus on. I am very happy that it seems to find its place in the program of the new political cycle, ”said V. Vasiliauskas at the online press conference.
The draft coalition agreement, drawn up by the three right-wing parties that make up the ruling majority, declares a 3% target for future investment in research and experimental development. GDP at 1.5%. GDP indicator already in 2024.
According to V. Vasiliauskas, the proportions of investments foreseen in the ADN plan should also be changed, since it is now planned to allocate approximately three times more funds for infrastructure than for investments in mind.
“I would say that the disproportion should change, especially since we are not really very advanced in that smart investment. (…) It is very important in the implementation of the DNA plan that we achieve the pan-European objectives, firstly related to greening, digitization, innovations ”, stated V. Vasiliauskas.
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