Lithuania is the best-positioned country in its region to overcome the economic fallout from the war in Ukraine, affirms the founder of one of the world's largest independent financial advisory, asset management and fintech organisations.
The comments from deVere Group's Nigel Green come as the war has intensified over the last week, again sending shockwaves through the economies of neighbouring countries.
He says: "The ongoing conflict in Ukraine has cast a long shadow over the economies of nearby countries, creating a ripple effect that demands immediate attention.
"Countries like Lithuania have not been spared from the repercussions of this crisis, with economic disruptions posing significant challenges.
"However, amid adversity lies the opportunity for strategic action to drive economic recovery and growth."
Lithuania, a key player in the Baltic region, has experienced first-hand the economic consequences of the conflict in Ukraine. The prevailing uncertainty has dealt a blow to investor confidence, causing domestic and foreign investments to stagnate.
Trade, a vital engine of growth for Lithuania, has been hampered by the disruption of supply chains and the deterioration of trade routes.
One of the most pronounced effects has been the sharp increase in energy prices. Disruptions in natural gas pipelines traversing Ukraine have led to supply concerns, causing energy costs to soar in Lithuania. This rise not only impacts households but also places local industries at a competitive disadvantage.
"Lithuania recognises the need for proactive measures to counter the adverse effects of the conflict," says Nigel Green. "This is why I believe it's the best-positioned country in the region to stimulate economic growth.
"In light of disrupted trade with Ukraine, Lithuania is diversifying its trade portfolio. By establishing robust trade relationships with stable economies beyond its immediate region, Lithuania can buffer itself against future shocks and bolster economic resilience."
He continues: "Acknowledging the vulnerability of traditional energy sources, Lithuania is turning towards renewable energy investments. This transition not only ensures energy security but also aligns with global sustainability goals, contributing to a more stable energy landscape."
Lithuania plans to invest in its infrastructure, and by creating well-connected transport networks, "the country seeks to position itself as a pivotal link between Eastern and Western Europe," attracting trade and investment.
"Most importantly, Lithuania aims to attract foreign direct investment by encouraging a business-friendly environment. Streamlining bureaucracy, offering incentives, and showcasing the country's potential can attract foreign companies to invest, thereby boosting economic activity and job and wealth creation."
In addition, by promoting research, innovation, and technology-driven industries, "Lithuania aspires to become a hub for high-value, knowledge-based jobs," and embracing cutting-edge technologies will "propel the nation towards economic rejuvenation."
Nigel Green concludes: "By adopting a multi-pronged approach that encompasses trade diversification, renewable energy, infrastructure development, foreign direct investment attraction, innovation, and diplomatic engagement, Lithuania is poised to weather the storm and emerge stronger than before.
"This commitment to progress underscores Lithuania's determination to turn adversity into an opportunity for sustainable growth."