Lithuania is the largest economy in the Baltic region and a leading fintech hub in Europe, with 210 fintech companies operating in the region. This is expected to grow even further, and with the UK leaving the European Union, Lithuania is now the leading country for fintech in the EU.
With agricultural land covering 50% of its landscape, agriculture and forestry form the bedrock of the country’s economy. Lithuania's geographical location between Europe and Russia has also made it a significant transport hub, with the Port of Klaipeda providing the country with direct links to Sweden, a major trading partner.
Lithuania enjoys strong ties with fellow Baltic countries Estonia and Latvia, with major investors often adopting a pan-Baltic approach. Moreover, when local start-ups expand beyond Lithuania they usually branch out into other Baltic countries.
As a result, the legal market is dominated by pan-Baltic law firms with offices across Lithuania, Estonia and Latvia. Firms such as Cobalt, Sorainen, Ellex and TGS Baltic are the leading firms in the market. This hierarchy has been disrupted somewhat, with the arrival onto the scene of new firm WALLESS, which is made of former partners of Ellex and recently merged with the Latvian and Estonian offices of Derling Primus. At present, Eversheds Saladžius (a member of Eversheds Sutherland) is the only international firm based in Lithuania.
In terms of Covid 19, Lithuania has been no exception to the economic and social impacts of the pandemic. At the tail end of 2020, a surge in cases saw the country jump from 18th to third worst-hit in the European Union in just six weeks. GDP shrunk by 1.3% for 2020, but the economy expanded for a second straight quarter in the final three months of year, suggesting some stability moving further into 2021.