2026-03-10
Gediminas Šimkus: Resilience of the Baltic States – a reality based on investor confidence
The economic resilience of the Baltic countries including Lithuania against global shocks is not based solely on political decisions but also on the ability to respond quickly to risks. Investor confidence in the region is determined by regulatory stability, the speed of decision-making and being part of the European Economic and Monetary Union, which reduces uncertainty and boosts the credibility of institutions.
This is being discussed today at a round table discussion organised by Lietuvos bankas on the economic resilience of the Baltic region and the decisions that determine it.
“In the Baltic States, decisions on security, energy and economic resilience are made under genuinely tense conditions, without the luxury of long deliberations and with a clear sense of responsibility for the outcome of these decisions. They are immediately tested in practice, so this is what specifically reveals the ability of the state and society to withstand pressure, ensure financial stability and maintain confidence even in the face of constant security challenges,” says Gediminas Šimkus, Chairman of the Board of Lietuvos bankas.
According to him, living with geopolitical tensions is both a challenge and an experience that teaches vigilance and the ability to anticipate shocks and react decisively to them.
“Private capital inevitably faces risks in every project. The risk does not scare investors but they do avoid uncertainty and ambiguity. The role of the state, strategic consistency and predictability therefore remain key factors of trust,” Mr Šimkus underlines.
Despite recent talks of investment drain, investors are not withdrawing from Lithuania. Quite the contrary, they are expanding, which confirms that Lithuania has chosen the right path.
- Since 2019, investments in Lithuania have increased by 40% – this is one of the best performance indicators in the European Union.
- Since 2022, the ratio of investment to gross domestic product (GDP) has been around 23% and is close to its historical highs.
- Between 2022 and 2025, foreign direct investment averaged at around 4% of GDP – almost twice as much as before the pandemic.
- A lot of investment goes to companies already active and scaling up in Lithuania, which is a sign of long-term trust.
Since 2022, Lithuania has attracted over 190 new investors. Although the pace of new projects is slowing due to the geopolitical landscape, the economy is transforming towards a higher value-added model, which implies bigger, longer-maturing but more sustainable projects that generate higher long-term returns.
“The main question today is not whether investors are staying but rather why they are staying and on what they are basing their decisions. As one of the most influential economists of the 20th century, John Maynard Keynes, has observed, investing is an act of faith in the future. This however is no blind faith – it is a rational decision based on data, experience and institutional quality,” says Mr Šimkus.
For more information on the event, see Lietuvos bankas’ website.