WBJ: Even before the pandemic struck, the internet was the lifeline of most economies. Now, even more so. How much money has been invested in the internet in your country? How many people have access to high-speed internet (above 25 Mbps download) in your country? And how tech-friendly is your country?

Eduardas Borisovas, Lithuanian Ambassador: According to DESI 2020, in Lithuania, fast broadband NGA (30 Mbps and higher) covered 69% of households (86% in the EU), while ultra-fast (100 Mbps and above) fixed broadband internet reached 61% of households, and Lithuania exceeded the EU average by about 17%. In 2020, €81.7 million was invested into the electronic communications network infrastructure, a 10.5% growth as compared to 2019. The operators invested mostly in the development of the optical fiber access network and 4G (LTE) network infrastructure used to provide data transmission services. Overall, 38.1% (€31.1m) of all investments were put in the mobile network infrastructure. A new generation internet access infrastructure, with a total value of €49.5m, is being developed in white areas.

WBJ: How does the growth forecast for Q4 2021 look for your country? What are the industries that have been performing well, that have been underperforming and the industries that seem to hold a lot of promise in your country?

Our economy should continue to grow in Q4 2021 but the risks that may weigh down on GDP growth have increased. Growth is driven by export-oriented sectors (manufacturing and transport), as well as domestically-oriented sectors (services, retail). High industrial activity in Western Europe and Scandinavia continues to support manufacturing. The major risk is the worsening situation in our healthcare system, as Covid patient numbers steadily increase (most new patients are unvaccinated). If the occupancy in hospitals continues to rise, there I s a chance that measures limiting social contacts will be implemented. Wholesale and retail trade, transport, manufacturing are the sectors that have had the biggest nominal impact on our economy in 2021 H1. The services sector holds a lot of promise.

WBJ: Poland recorded the highest inflation in 20 years in August, according to the early estimates by its central stats office. How high/low is the inflation in your country? What are the causes? 

In August 2021, annual inflation reached 5%, the highest in a number of years. The growth in prices is mostly driven by external factors (high commodity prices, high prices of components, a lack of global supply of various goods). Internal factors are also contributing to growth in inflation, mostly the tight situation in the labor market. In Q2 2021, compared to Q2 2020, wages rose by 12%. The rapid increase in wages is putting additional upward pressure on the inflation rate.