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Lithuania While the GDP gap per capita relative to the upper half of OECD countries remains large, owing to relatively low productivity, its convergence towards high-income countries continues steadily. Income inequality, as measured by the Gini coefficient, is well above the OECD average and has increased in recent years. The income share of the poor remains low. Per capita greenhouse gas emissions are below the OECD average. The government increased the non-taxable income threshold and introduced more generous unemployment benefits under the New Social Model. Modernised curricula and other initiatives aim to enhance the labourmarket relevance of vocational education and training system. Governance reforms have increased the independence of the boards of state-owned enterprises and introduced a better separation between operation and monitoring functions. In the health sector, the government has been promoting healthy lifestyles and granted pay rises for physicians in rural and remote areas to reduce regional differences. A reform underway in the reimbursement for drugs aims at incentivising the use of generic drugs. New provisions in 2017 helped reduce co-payments by around 20%. Improved business-research collaboration on innovation and a more efficient insolvency regime that facilitates early restructuring, and where necessary, firm exit, would boost productivity growth. Further fostering inclusive growth hinges upon making the education system more responsive to skills needs and improving the employability of low-paid workers through lower social security contributions and more effective activation programmes. Growth performance, inequality and environment indicators: Lithuania A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
C. Convergence in GDP per capita continues Gap to the upper half of OECD countries5
2002-08 9.0 1.3 -0.3 1.5 0.1 7.2 2.4 4.7 0.3
2012-18 4.3 2.6 1.3 1.3 0.0 2.0 0.7 1.3 -0.3
Level
Annual variation (percentage points)
-40
2016 37.8 (31.7)*
2013-16 0.9 (0)*
-50
5.8 (7.6)*
-0.3 (0)*
-60
2016 4.1 (10.9)* 0.2 (0.3)* 0.0
Average of levels 2010-16 4.3 (11.3)* 0.2 (0.3)* 0.0
Per cent 0 -10 -20 -30
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
GDP per capita -70
GDP per hour worked
-80
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955142