Lithuania Business Forecast Q1 2007

The Lithuania Business Forecast Q1 2007 report provides economic, financial, macroeconomic and political analysis for companies in Lithuania, helping them to formulate their budgets and business strategies to promote growth and profitability over the next 5 years. This business Forecast Q1 2007 involves a full investigation into Lithuania's economy and business environment, an essential tool for multinational companies, financial institutions and governments.

• Executive Summary
  • Focus On 2007
• Chapter 1: Political Outlook
  • SWOT Analysis
  • BMI Political Risk Ratings
  • Domestic Political Outlook
  • Survival Prospects Increase
  • The lack of a parliamentary majority does not appear to be deterring the coalition government from promoting its
  • policy agenda Competent management and careful consensus building suggest it may achieve rather more than
  • previously expected But just how much more is uncertain, as electoral considerations could still trigger further
  • bouts of political turbulence and lead to policy deadlock
  • Table: Lithuanian Cabinet (As Of December 2006)
• Chapter 2: Economic Outlook
  • SWOT Analysis
  • BMI Economic Risk Ratings
  • Economic Activity
  • Growth Slows Sharply In Q306
  • Provisional estimates reveal that the economy slowed sharply in Q306 The slowdown is likely to prove temporary,
  • however Faster growth can be expected going into 2007, although the trend will be towards lower and more
  • sustainable growth further ahead as world growth slows, domestic financial conditions tighten, and supply-side
  • bottlenecks begin to bind
  • Table: Indicators Of Economic Activity
  • Fiscal Policy
  • Government Approves Socially Oriented Budget For 2007
  • Budget plans for 2007 suggest that Lithuania will again comfortably meet the Maastricht Treaty fiscal criteria
  • But they fall short of providing the significant fiscal tightening that the European Commission and IMF believe
  • is needed, if the Maastricht inflation criterion is to be met in time to adopt the euro by the government's new
  • target date of January 2010
  • Table: Key Fiscal Data
  • Balance Of Payments
  • Current Account Widens, External Debt Grows
  • Robust investment spending and high energy costs have put upward pressure on the current account The
  • strength of domestic demand growth suggests little scope for a significant improvement in the external position
  • in 2007-2009
  • Table: Current Account
• Chapter 3: Special Report
  • BMI Sovereign Risk Ratings
  • Table: BMI Sovereign RIsk Ratings
  • Emerging Europe
  • Table: Emerging Europe Sovereign Ratings - Evolution of Ability to Pay
  • Table: Emerging Europe Sovereign Ratings - Evolution of Willingness to Pay
• Chapter 4: Business Environment
  • SWOT Analysis
  • Legal Issues
  • Labour Force
  • Table: Demographic Indicators
  • Table: Employment Indicators
  • Foreign Investment Policy
  • Table: Lithuania, Annual FDI Inflows
  • Table: Emerging Europe, Annual FDI Inflows
  • Foreign Trade Regime
  • Tax Regime
  • Table: Top Export Destinations, US$mn
• Chapter 5: Key Sectors
  • Telecommunications
  • Table: Lithuania Telecoms Sector Mobile Historical Data & Forecasts
  • We now forecast that the active mobile subscriber base in Lithuania will grow by around 7% in 2006, raising
  • penetration to just over 135% Growth rates should slow but the entry of new operators as well as greater take-up
  • of 3G services and continued trend of multiple SIM ownership should combine to raise penetration in excess of
  • 150% in 2009
  • Table - Key Players: Lithuania Telecoms Sector