Minister's Foreword

We have finished writing one more page, the thirteenth, of Lithuanian history. We started writing it back on 11 March 1990 . The year 2003 was a special one for us, as it was a litmus test that showed our preparedness for a new stage of state life, the European Union. Having expressed our willingness to become part of this Community we have also committed ourselves to rapid development of the country's economy, enabling us to stand on equal footing with the economies of the EU member states and making us capable of competition in its internal as well as external markets. Last year bore witness to the fulfilment of our commitments. Moreover, we have surpassed the expectations by remaining the leader in the growth of the gross domestic product (GDP) in Europe and by establishing a new record in Lithuania , of nine per cent growth. Such an economic boost is known only to the so-called Asian Tiger countries. The Lithuanian economy, which is more and more often called the Baltic Tiger, is living up to its name.

GDP growth was not the only achievement in 2003. For the past two years we have been the only country in the expanded Europe where inflation has given way to deflation. Company profits were further increasing, the level of unemployment decreasing and the savings of residents growing.

It is not my wish to make it a merit solely of the Ministry but I daresay that the Ministry has contributed significantly to ripening these “fruits”. It has been actively involved in improving conditions for business development, promoting export and attracting investment. Last year, we almost finished creating a network of business services covering the entire country. The network has become of genuine support to several hundred businessmen in the country.

The fact that the goods produced by Lithuanian companies are becoming more and more competitive outside the country is proven by the constant growth in exports. In 2003, the total export volume grew by 9.1 per cent. The share of exported goods of Lithuanian origin accounted for 80.3 per cent, with their value increasing by 14.7 per cent. Lithuanian industries are exporting about 60 per cent of production, while several sectors (textile and apparel production, the chemical industry and manufacturing of radio and television electronic and communications equipment) are exporting up to 80–90 per cent of production. The lion's share of these exports, as much as 65.6 per cent, was exported to the EU and the then candidate countries.

The Ministry of Economy has well facilitated the process of promoting the export of Lithuanian goods and services, attracting tourists and foreign investment to the country, disseminating information about the Lithuanian economy by establishing eight positions of commercial attaché in Eastern and Western Europe and representations of the Lithuanian Development Agency (LDA).

I am pleased to note last year's strong performance of companies falling under the supervision of the Ministry: Lietuvos energija AB, Rytu skirstomieji tinklai AB, Vakaru skirstomieji tinklai AB, Lietuvos elektrine AB, Ignalinos atomine elektrine VI, Mažeikiu nafta AB, Lietuvos dujos AB, the Lithuanian exhibition centre, LITEXPO, etc. All of these companies had a profitable year.

However, despite these successful results of last year's economic growth, we should not rest on our laurels. After entering the internal market of the EU, we will not only benefit from its advantages, as any other member state, but we will also have to respond to the challenges posed for every aspect of life across the state. We will have to further accelerate the rate of economic development, and provide only competitive goods and services to the world market. I have no doubt that the European Union's structural funds will be of major benefit in this regard. Their effective use will help to create new employment opportunities and increase the level of income and consumption per capita.