Lithuanian FDI growth bucks regional trend
With FDI project numbers falling in both CEE and Europe as a whole, the number of projects brought to Lithuania increased compared to the 1st half of 2014. Lithuania now leads CEE in terms of the number of FDI projects per 1 million inhabitants.
341 FDI projects were launched in the CEE region during the first half of this year according to fDi Markets, the Financial Times’ FDI monitoring database.
Across the whole of Europe, the downward trend in FDI projects was even more pronounced, with the number of projects in Western Europe shrinking by almost one third. Lithuania was one of only four European economies that saw an improvement in the number of FDI projects it attracted compared to the 1st half of 2014. The other three were Slovenia, Hungary and Slovakia.
Large-scale projects lead to increase in FDI jobs created in CEE
Although the total number of FDI projects in CEE fell, the number of planned jobs created by FDI increased by 44 %. This is largely due to an increase in the number of very large FDI projects in the region. The number of projects that will create over 2,000 jobs jumped from zero in the first half of 2014 up to 7 for the same period this year.
Lithuania out in front for number of projects per million inhabitants, with room for improvement in terms of job creation
Lithuania was by the far the most successful country in the CEE region in terms of the number of new FDI projects relative to population size. In the first half of this year, 24 new FDI project were set up, which is more than 8 projects per one million inhabitants. This is by far the best ratio in the CEE region. Hungary were the second most successful, attracting 5.9 projects per million inhabitants, whilst the CEE average was just 3.4.
With regards to the countries from which new FDI arrives in Lithuania, there were no big surprises in the first half to 2015. The USA, Nordic countries, Germany and the UK still occupy the leading positions in terms of investment quantity. Whilst service provision remains the number one project type for US and UK companies, manufacturing dominates for companies from the Nordic countries and Germany.