Minsk Can Only Dream Of Such A Thing: Vilnius Is Getting Richer At A Tremendous Rate

The economic boom of Lithuania's capital.

The growth of Vilnius in recent years is undeniable - the number of residents has increased by 50,000 in five years, and by the end of the decade, the capital region could concentrate more than half of Lithuania's entire economy, according to LRT.

According to Swedbank chief economist Nerijus Maciulis, since Lithuania joined the EU, the country has moved significantly closer to the EU average in terms of GDP per capita (adjusted for price differences) - and no other EU country has made such rapid progress in 20 years.

The economist emphasized that no other city in the region has made such a leap as Vilnius.

"Since the beginning of the century, the GDP of Vilnius, the economy of the capital region has grown eight times. Only Tallinn is catching up with us, and other cities in the region are far behind," he said at the Vilnius Ambitions forum.

Vilnius and its region are becoming the main center of Lithuania's economy: according to forecasts, by the end of the decade about 50% of the national economy will be concentrated here. According to this indicator, the capital region has not only equaled the EU average, but also overtaken the capital regions of Spain and Italy.

The basis of growth is the high added value sector - finance, ICT and other service sectors, which already account for a quarter of the city's economy. Their contribution has grown about 20-fold in a decade and is forecast to exceed €10 billion this year. The sector employs about 50,000 people - every tenth resident of Vilnius.

Foreign direct investment in the country has increased from EUR 4 billion before EU accession to EUR 40 billion at present, of which 75% is in Vilnius, mainly in high value-added services.

Industry accounts for about 15% of the capital's economy - higher than in Riga and Tallinn, but lower than in Helsinki (19%). Tourism is also showing growth: the number of visitors to the city has increased by almost 20% over the decade.

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